Bill Boersma has a few stories to tell about smoking and its effects on insurance premiums.
We’re a pretty open-minded office – you die your way, we’ll die ours, as Sinatra said (we’re a pretty healthy crew, though). We wonder, though, that anyone needs to be told: smoking kicks up your life insurance premiums long before it helps you kick the bucket.
Bill had a client who took out a $1 million, 10-year term life policy on himself and his wife. He was clean; she smoked. The client’s wife was perfectly healthy (tick-tock), so the premium penalty wasn’t catastrophic: $3,000. Could be better, could be worse.
A couple of years later, the wife kicked the habit. Bill rewrote the 10-year policy, bringing the premium down to $1,100 – far more palatable to the clients. Interestingly, the couple could have extended the policy to 20 years for only $1,900. Quitting smoking, it seems, introduces clients to a wider range of choices at more affordable rates.
Young people today are turning away from traditional tobacco products in favour of e-cigarettes and vaping. These may be a better choice for your health and some smokers use them to help with the rigors of quitting. These new forms still involve highly addictive nicotine, so most insurers consider e-cig users and vapers as smokers. Some see the matter differently, so shopping around is essential.
For more information, please read:
The Life Insurance Benefits of Quitting Smoking | Wealth Management