Tobacco and Life Insurance: Here’s What You Should Know

Smoking and using tobacco in other forms can be hazardous to your health, and may also cost you money when you are considering the purchase of life insurance. Insurers assess the risks they will take on when they insure you, and the increased risk of illnesses such as cancer and heart disease for those who use tobacco means that they are likely to charge more for your policy. Bankrate’s insurance experts explain what you can expect if you’re a tobacco user looking to buy life insurance.

Life insurance for tobacco users

Tobacco use remains the leading cause of preventable death in the U.S., contributing to more than 490,000 deaths annually. The impact of smoking on health is clear, and life insurance companies take these risks into account when determining premiums for smokers. If you smoke, expect to pay higher rates than nonsmokers, as insurers generally categorize applicants into separate risk classes. Tobacco users are often placed in a high-risk category and their premiums will reflect that.

Common risk classifications are:

• Preferred Plus
• Preferred
• Standard Plus
• Standard
• Preferred Tobacco
• Standard Tobacco

While tobacco use can drive up costs, some life insurance providers may offer more flexibility depending on the tobacco product used. And if you quit using tobacco, many insurers allow you to reclassify into a nonsmoker rate category after a period of time — typically after being tobacco-free for at least a year.

Types of tobacco that life insurance companies test for

Life insurance companies evaluate all forms of tobacco use, not just cigarette smoking, when determining your risk class and premium. Tobacco use, in any form, often places you in a more expensive smoker classification. However, each type of tobacco product may impact your policy differently, depending on frequency and type of use.

Cigarettes

Life insurance underwriting classifies applicants as being either a tobacco risk or non-tobacco risk. Smokers who use cigarettes regularly are considered high risk to insure, so you’ll be placed into one of the tobacco risk classes if you apply for life insurance as a current cigarette smoker.

Cigars

If you smoke cigars irregularly, some life insurance providers might cut you a break. But underwriting guidelines usually state that you can only smoke a few cigars a year. And it’s possible that some life insurers won’t make a distinction between occasional cigar use and regular cigarette use.

E-cigarettes/vaping

Life insurance providers generally don’t separate vaping from regular cigarette smoking due to the additives, flavors and chemicals that can be harmful to people’s health. If you use e-cigarettes or vaping products, expect that the provider will designate you as a smoker, just like if you used traditional tobacco.

Smoking cessation products

Products that help you quit smoking, like nicotine gum and nicotine patches, still leave traces of cotinine in your body. So, if you use these products, nicotine will show up in your medical tests. This means you’ll still probably be classified as a tobacco risk, even though there’s no actual tobacco in the products.

Chewing tobacco

Though chewing tobacco isn’t smoked, it contains nicotine and carcinogens, which can still have long-term health impacts, including oral cancers and heart disease. Insurers recognize these risks, so even though you’re not inhaling smoke, users of chewing tobacco are typically classified in the smoker category. This classification often leads to higher premiums, similar to what you’d pay as a cigarette smoker. If you chew tobacco regularly, it’s important to shop around, as some insurers may offer slightly more competitive rates than others for this type of use.

Pipe smoking

While pipe smoking may seem less harmful than cigarettes or cigars, it still involves inhaling nicotine and harmful substances. Health risks include respiratory problems and cancers, particularly of the lungs and throat. Most life insurance companies place pipe smokers in the smoker category, leading to higher premiums. However, if you only smoke a pipe on rare occasions, some insurers may allow you to qualify for nonsmoker rates. It’s worth noting that honesty about your pipe smoking habits is essential, as inaccurate information could result in a denied claim.

Marijuana

Marijuana use presents a unique case when it comes to life insurance classifications. Occasional or social use might not automatically place you in a smoker category, depending on the insurer. They typically focus on two key factors: how the marijuana is consumed — whether smoked, vaped or taken as an edible — and how often you use it. For instance, smoking marijuana regularly will likely lead to a smoker classification, with higher premiums as a result. However, occasional use, especially in nonsmoking forms, might allow you to qualify for nonsmoker rates.

If you have a medical marijuana prescription, insurers usually focus more on the underlying health condition rather than the marijuana use itself. That said, the nature of the condition can still influence your classification. Chronic or severe health issues may lead to higher premiums, regardless of how you use marijuana. As with all substances, it’s important to be upfront about your usage when applying for life insurance.

How do insurance companies know if I use tobacco?

In addition to medical tests, most life insurance applications ask if you have used any tobacco products within the last 12 months. It’s important to be honest about tobacco use, because insurers can request everything from prescription histories to comprehensive medical records. They may even review publicly available social media posts to see if you are observed smoking in any photos or talking about using tobacco.

Life insurance nicotine tests

A life insurance nicotine test can take several forms, and is likely to be a part of the medical exam that insurers may require before covering you. The exam may use a saliva test, urine or blood samples to test for nicotine. In a few cases, they may check a hair sample for signs of nicotine or cotinine. Any of these tests will show if you have used tobacco at any time in the recent past.  

How long does nicotine stay in your system?

How long nicotine stays in your system depends on a few factors, including how much you’ve used and how well your body processes the substance. The test used may also vary in how sensitive it is in determining the presence of nicotine.

Blood, urine and saliva tests are the most commonly used assessments. You may also be asked for a hair test, though it’s not as likely. Here’s a breakdown of common tests and how long nicotine or cotinine can be detected:

• Blood test: Nicotine is typically detectable for one to three days after use, while cotinine can last up to 10 days.
• Urine test: Nicotine and cotinine are usually undetectable after three to four days, but it may be detectable for longer if you smoke menthol cigarettes.
• Saliva test: Saliva tests are considered highly sensitive and can detect cotinine for up to four days.
• Hair test: Hair tests are reliable for long-term detection, showing nicotine use for one to three months. In some cases, nicotine can be detected for up to 12 months.

To qualify for nonsmoker rates, most life insurance companies require you to be tobacco-free for at least 12 months. Even if tests no longer show nicotine, being honest about your smoking history is critical. Lying could result in claim denials or even legal consequences due to insurance fraud.

How former tobacco users can get the same rates as non-users

When you sign up for a new life insurance policy, the provider will probably ask if you’ve used nicotine in the last 12 months. To be considered a nonsmoker for life insurance, you’ll typically need to be nicotine-free for at least a year.

If you already have a life insurance policy and you’ve quit smoking, you can ask your provider for a rate reconsideration once you think you will test clean for nicotine. Again, 12 months is typically the minimum timeframe insurers prefer you to be tobacco-free. 

At this point, your provider will likely require you to take another medical exam. You also have the option to search for a different provider and start fresh with a new nonsmoker life insurance policy. But it’s important not to cancel your current policy until a new one is 100 percent active. You don’t want to be left uninsured.

Frequently asked questions

• What is the best life insurance company?
  

  The best life insurance company varies from person to person, as it depends on your unique needs, including your health, age, financial goals and the type of coverage you’re seeking. For some, a term life insurance policy, which offers coverage for a set period, like 10, 20 or 30 years, might be the best fit due to its affordability and straightforward nature. Others may prefer the lifelong coverage and cash value benefits of a whole life insurance policy. If you’re looking for more flexibility in premium payments and death benefits, a universal life insurance policy could be a good option.

  To find the best company for your situation, compare quotes from multiple providers, considering coverage options and policy types that align with your goals.

• Does secondhand smoke affect nicotine tests for life insurance?
  

  According to the CDC, secondhand smoke can cause health issues. Whether or not smoking affects your insurance rates depends on the level of your exposure. Secondhand smoke exposure can be detected using a cotinine test, so it’s possible — although rare — that secondhand smoke could result in a provider classifying you as a tobacco user.

• How long do you have to be nicotine-free for life insurance?
  

  Depending on the test and frequency of use, it’s possible to pass a nicotine test after you’ve been smoke-free for a few weeks. However, most life insurance providers will only classify you as a non-user after you’ve quit for a year. Consider applying as soon as you have a need for life insurance and then re-apply later once you’ve been tobacco-free for over 12 months to see if you can qualify for a lower rate.

• How does the payout process work for life insurance beneficiaries?
  

  When the named insured (who may or may not be the policyholder) passes away, the beneficiary will need to submit a claim to the insurance company. The insurer typically requires a death certificate as proof of the person’s passing. Once the claim is approved, they aim to send the death benefit proceeds to the beneficiaries in a timely manner. However, if the insured passes away during the first two years of the policy’s existence, there may be a contestability period to be considered. During this period, the insurer can review the policy, looking for fraud or errors such as inaccuracies regarding tobacco use. If it is discovered that there are statements on the application that are not true, the claim can be delayed, reduced or denied, underscoring the need for honesty when applying for a policy.

• How long does tobacco stay in your system if you vape?
  

  The American Academy of Pediatrics reports that nicotine levels in e-cigarette users (vapers) are equivalent or higher than those in traditional smokers. Users of both non-nicotine-containing and nicotine-containing e-cigarettes had urinary cotinine levels 12 and 146 times higher, respectively, than non-users. Cotinine can be detected in the body up to 10 days after use.