Few questions affect the price of life insurance as much as this one: do you smoke? Insurers price smoker and non-smoker risk separately, and the difference can be significant. Here are the rules of rating - and the good news for anyone who quits.
- Rating is based on the declaration's smoking questions - the definition (what counts as smoking, and over what period) differs between insurers.
- An untrue answer here is a breach of the duty of disclosure too - it puts the payout at risk, and it isn't worth it.
- After quitting - once the smoke-free period set out in the policy terms has passed - you can request a re-rating.
Who counts as a smoker?
Declarations typically ask about the fact of smoking, the amount, and the time of your last cigarette - and at many insurers, the question extends to e-cigarettes, heated tobacco products, and nicotine replacement products too. "Occasional" smoking can also count as smoking under the definition - the exact definition always comes from the particular insurer's questionnaire, so it pays to read the question word for word: typical filling-in mistakes.
Why is the difference in the premium so large?
The insurer prices for the long term, on a statistical basis - and smoking is one of the strongest factors in mortality and morbidity statistics. Smoker rating is therefore not a penalty, it is a risk-based price. The exact difference varies by product, and it really shows up when you compare offers from several insurers - as a smoker, obtaining competing offers pays off even more.
Quit smoking? Here's how to make it count
With some products, after the smoke-free period set out in the policy terms, you can request non-smoker re-rating - with a new declaration and sometimes an exam; with others, the rating is locked in for the whole term, and the better premium is only available with a new policy. Where the terms allow it, this can also be initiated on an existing policy: the anniversary check-up is a good moment for it. If you're quitting now, it's worth noting the date - patience here is rewarded with a lower premium.
And if you start again after taking out the policy?
The terms' change-notification rules apply to habit changes after signing - it's worth knowing this product by product, and mentioning it if you're unsure. The principle here is the same as with the duty of disclosure: a clean, clear situation serves your family's interest, because an unchallengeable policy is the real protection.
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