Life Insurance for Smokers: What You Need to Know

Underwritten by United of Omaha Life Insurance Company

10.29.2025 | Category: Life Insurance

Having seen the additional costs of life insurance for smokers, a man marks a calendar setting a goal to quit smoking.

Summary: Life insurance can be a great way to protect your loved ones and leave a legacy if something happens to you. But if you use tobacco—in any form—good coverage can be costly. Learn what smoking (and quitting) can mean for your policy and payment choices.

Quick Links

What is life insurance?
How smoking affects life insurance
Who counts as a 'smoker'?
How insurers know if you smoke
What if you quit smoking?
Next steps for buying life insurance
Frequently asked questions (FAQs)

If you’re a smoker, you probably know it's better for your health to quit. But kicking the habit can also be better for your wallet. That's because, besides the money you might save on healthcare (let alone cigarettes or other tobacco products), you could pay a lot less for life insurance.

What is life insurance?

Life insurance is a contract between you and a life insurance company: You pay a fee, or premium, and in return, the insurer agrees to pay a stated death benefit to the "beneficiaries" you name if you die while the policy is active.

Typically, you pay premiums monthly, but the payment schedule could be annual, semiannual, or, if you buy group coverage at work, each pay period. Your beneficiaries can include your family members, friends and even charities, and you can update your choices as your situation changes.

There are two main types of life insurance:

Term life insurance:

A term policy lasts for a set period, such as 10, 20, or 30 years. If you die during the term, your loved ones receive the death benefit. But if you live longer, the policy ends.

Permanent life insurance:

As the name suggests, this coverage lasts your entire life, as long as you keep paying the premiums. It also builds a tax-deferred "cash value" over time, which you can borrow against or withdraw in some cases while you're still alive. These and other benefits usually make permanent insurance pricier than term. (Note that some term policies can be converted to permanent coverage without the need for a new medical exam. Also, if you withdraw from a permanent policy’s cash value, or you don't repay a loan against it, the death benefit could fall by the amount you took.)

Whole life is the most common type of permanent insurance. Besides lifelong coverage, it offers flat, predictable premiums for as long as you own the policy. But other types, like universal or variable life, may offer more payment flexibility or investment choices for the cash value portion of the policy.

How smoking affects life insurance

Life insurance is all about risk. For your part, you don't want to take the chance of leaving your loved ones unprotected if you die. But for insurance companies, the risk is that they'll have to pay out a policy's death benefit sooner than later (or at all).

Insurers use various factors, from age and gender to lifestyle, to determine those odds and assign you to a "risk class." (This process is known as underwriting.) Because smoking is linked to many health problems, such as cancer, heart disease and lung disease, insurance companies see smokers as more likely to die earlier than nonsmokers. To make up for this risk, they often charge smokers twice as much or more than nonsmokers for the same coverage.¹

Of course, the exact cost for you will depend on your age, health, how much you smoke, and the type of policy you choose. But in general, the longer and more often you smoke, the higher your premiums will be.

Who counts as a 'smoker'?

Insurers usually define a smoker as anyone who has used tobacco products in the past 12 months. These include:

Cigarettes

Cigars

Hookahs

Chewing tobacco

Pipe tobacco

E-cigarettes and vaping products

Nicotine patches or gum

It is possible that some insurers may give you a break if you use nicotine products only occasionally versus regularly.

How insurers know if you smoke

When you apply for life insurance, you must answer questions about your health and lifestyle. Typically, that includes tobacco use. It’s important to be honest. If you lie about smoking and the company finds out later, they may cancel your policy or refuse to pay the death benefit.

Many insurers also require a medical exam. This may include a blood or urine test, often administered at your home. If you say you don’t smoke, but the test finds nicotine in your system, you could be denied coverage or charged more for it. Also, some insurers may check your medical records to verify your smoking status.

What if you quit smoking?

If you stop smoking, you shouldn't expect lower premiums right away. That's because most insurers will want to see that you’ve been tobacco-free for 12 months or more before they consider (and rate) you a nonsmoker.

Once you quit using tobacco, you can ask your insurer to review, or "re-rate," your current policy. If you qualify as a nonsmoker, your premium might be reduced. But in some cases, it might be better to buy a new policy.

Remember, smoking is just one aspect of your health. If you've also made strides like losing weight or managing your blood pressure, you could save even more.

Next steps for buying life insurance

Life insurance is important to have, even if you smoke. While it may cost more, you have options.

Shop around. Not all insurers treat smokers the same way. Some may offer better rates than others, particularly if you're in good health otherwise.
Be honest. Always tell the truth on your life insurance application. It’s better to pay more now than to risk losing your coverage later.
Work with a professional. An insurance agent can explain your choices, help you determine how much coverage you need, and help you find insurers that offer the best policies and rates for your situation.
Commit to quit. Of course, the best way to boost your prospects is to stop smoking. The CDC offers a variety of smoking cessation resources to help.
Consider no-exam alternatives. If a basic term or permanent policy won't work for you, you might look at a “guaranteed” or “simplified” issue insurance policy. With United of Omaha, people ages 45-85 are guaranteed acceptance. Neither requires a medical exam, but both have coverage and benefit limitations.

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Taking a little time to understand your no-exam life insurance options now can make a big difference for you and your loved ones later. Even if you smoke, you may still qualify for life insurance.

Frequently asked questions (FAQs)

Are there life insurance policies designed for smokers?

Yes, some insurers offer special policies for tobacco users. These may have slightly lower premiums than regular smoker-rated policies, especially if you're young and healthy. These policies may also have fewer medical questions or exams, which can be helpful if you have other health issues.

However, these policies may also offer lower coverage amounts or have certain limits. It’s important to read the fine print and ask questions before signing up. Make sure the policy offers enough coverage to meet your needs and help protect your family.

Can smokers be denied coverage entirely?

It’s rare to be completely denied life insurance just for smoking. However, if you're older, have smoked for many years or have other health problems, you may find it harder to get approved. In that case, you might consider a guaranteed issue life policy. These don’t require a medical exam, but they're more expensive and offer lower coverage. You also might have to wait two years or more before the full death benefit is available.

Does marijuana use affect my life insurance options?

The answer may depend on how, how often and why you consume cannabis or hemp-based products. As of February 2024, 47 states and the District of Columbia allow marijuana for medicinal use, while 24 (and D.C.) also allow it recreationally.2 As with tobacco, when you apply for coverage, mention all details accurately.