How smoking impacts life insurance premiums

Insurers charge higher premiums for smokers because of the increased health risks associated with smoking. Smoking is linked to severe conditions like lung cancer, heart disease, and complications during pregnancy, all of which raise the likelihood of claims. For insurers, this added risk translates into higher costs for smokers.

But what about vaping or alternative tobacco products? Most insurers in New Zealand classify vapers and users of chewing tobacco as smokers because they still expose your body to nicotine and other harmful substances. This means that even if you’ve switched to vaping, your premiums may remain as high as a smoker’s.

Real-life cost comparisons: Smokers vs. Non-Smokers

To illustrate how smoking affects life insurance premiums, here’s a comparison of smoker and non-smoker rates based on average monthly costs for a $500,000 cover for a 30 year old:

This comparison shows how smoking status significantly affects premiums, especially for men. For example, a 30-year-old male smoker could save over $390 per year by quitting. Many insurers reclassify you as a non-smoker after 12 nicotine-free months, offering a substantial financial incentive to quit. If quitting feels overwhelming, resources like Quitline NZ can help you take that first step toward lower premiums and better health.

How insurers define smoking

For insurance purposes, smoking isn’t limited to cigarettes. Insurers typically classify you as a smoker if you:

• Use cigarettes, cigars, or pipes.

• Use vaping devices or e-cigarettes.

• Chew tobacco or consume nicotine products.

To be classified as a non-smoker, most insurers require you to be nicotine-free for at least 12 months. Being honest during your life insurance application is also crucial. Insurers may conduct medical underwriting, including tests for nicotine by-products, to verify your smoking status. Dishonesty can lead to:

• Policy voiding: Insurers may cancel your policy if they discover false information.

• Benefit denial: Claims may be denied if your smoking status was misrepresented.

Have you ever thought about what life insurance really is and if you need it? If so, check out our article on What is Life Insurance and Do You Need It? It covers all the basics and helps you figure out how life insurance can provide peace of mind for you and your loved ones.

Exclusions related to smoking

Some insurers add exclusions to policies for smoking-related illnesses or causes of death. For example, if you develop lung cancer as a result of smoking, the insurer might deny the claim. To avoid policies with restrictive exclusions, always read the fine print and consider consulting with an adviser.

Tips for reducing life insurance costs as a smoker

Quit smoking

One of the most effective ways to lower your premiums is to quit smoking. After 12 months of being smoke-free, you can request to be reclassified as a non-smoker, leading to significant savings.

Choose the right cover amount

Start with a coverage amount that fits your budget. You can adjust your policy later as your circumstances change, especially after quitting smoking.

Compare policies

Not all insurers charge the same rates for smokers. Use Quashed to compare rates across providers in a simple way.

Lead a healthier lifestyle

Other factors like regular exercise, a balanced diet, and routine medical checkups can also lower your premiums by demonstrating a commitment to good health.

Explore NZ quitting resources

• Quitline NZ: Offers free 24/7 support to help you quit smoking.

• Stop Smoking Services: Provides face-to-face assistance across New Zealand.

• Government Support: Use smoking cessation programs for additional guidance.

How Quashed simplifies life Insurance

Whether you are a smoker or non-smoker, at Quashed, we are changing insurance shopping with our live, real-time comparison platform.

• Live price comparisons: Unlike static comparison sites, Quashed connects directly with insurers to show you actual, up-to-the-minute quotes. No estimated prices or outdated information – you see exactly what insurers are offering right now.

• Instant, accurate quotes: Enter your details once and immediately access live pricing from multiple insurers. No need to visit different websites or wait for email quotes. What you see is what you'll actually pay.

• Clear policy information: Compare current offers side-by-side with transparent pricing and coverage details.

• Money-saving features: Access live new customer discounts and promotions, see current wellness benefits and rewards programs, compare actual member perks across different insurers.

• Smart guidance: Our platform provides contextual tips as you compare, helping you understand how different live offers match your needs.

Join over 45,000 Kiwis and start comparing now to see real-time insurance deals—no estimates, no waiting, just current prices from New Zealand's leading insurers.