|Will I get charged more as a smoker?
Yes you will.
But first let us give you the usual Life Company’s definition of a smoker:
They define a smoker as:
“Someone who has used, smoked or otherwise consumed any form of nicotine products during the previous 12 months.”
A few Life Companies have extended this definition to any time within the past 5 years. If you have given up smoking during the previous 1 to 5 year period we suggest that find a company that uses the 12-month definition, their premium will be considerably cheaper.
When an insurance company calculates its premiums, it has to work out the risk of you dying whilst the policy is in force. (Or with Critical Illness Insurance, the risk that you will become critically or seriously ill during the policy’s term.)
They will also consider whether or not you smoke, your current age, your age at the end of the policy’s term, your current occupation and your past and present health record.
As research shows that smoking can damage your health, Life Companies require higher premiums from smokers in comparison with non-smokers. Most Life Companies, will ask you questions about the type of and quantity of tobacco products you use. They will use this information to predict your future health and this forms an important part of their risk assessment process.
Even though some Pro Smoking Pressure Groups argue that smokers under the age of 40 have around the same probability of dieing than non smokers, it is common to find that the premium for a male smoker aged 25, on a 15 year term, is between 30% and 50 % more than a non-smoker would pay.
Because prices for smokers are so high, it becomes even more important for a smoker to seek out the cheapest possible insurance premium.