Life insurance in Canada is crucial for securing the financial future of your loved ones in the event of your passing. However, tobacco use can significantly increase the cost of this coverage. 

In our “Life Insurance for Smokers vs. Non-Smokers” guide, we explore why non-smokers enjoy the lowest premiums, reflecting their lower risk levels. This guide also delves into how smoking affects pricing, the likelihood of approval, available policy choices, and the claims process.

What Makes You a “Smoker” to Insurers

First, it’s crucial to understand what activities classify you as a “smoker” during the life insurance application process. Nicotine intake in any form often triggers higher premium rates for coverage, including:

• Cigarettes
• Cigars
• Pipes
• Chewing tobacco
• Snuff
• Nicotine patches/gum
• E-cigarettes/vaping
• Heated tobacco products

Insurance applications typically ask if you’ve used any tobacco or nicotine products within the past 12 months. Even occasional cigar-puffing can mean paying smoker rates. Marijuana is also classified as smoking by some insurers.

Cotinine testing analyzes blood, urine, or saliva for the nicotine byproduct to verify smoking status. One cigar over the past year can result in elevated cotinine (1). Always confirm an insurer’s classification rules before applying.

Why Do Smokers Pay Double for Life Insurance?

Smokers pay 1.5-2x more in premiums versus non-users for identical policies. This results from the higher mortality risks and shorter lifespans associated with tobacco use.

For example, a 30-year-old male smoker may pay $828 monthly for a $500,000 policy versus just $303 monthly for a non-smoking male.

Insurers must compensate for the lower life expectancy of smokers via higher premiums to offset the increased profitability risk.

How Smoking Affects Life Insurance Approval

Gaining approval for coverage as a smoker involves a more rigorous underwriting process, including:

• Lengthier health history questionnaires
• Additional doctor exams and lab tests
• Requests for medical records, prescription histories, and MD visit notes
• Social media searches for undisclosed tobacco use

Insurers closely scrutinize health markers influenced by smoking, like cholesterol, blood pressure, and pulse rate. Approval delays are expected for smokers while extra requirements get processed.

However, coverage is certainly still attainable for most tobacco users, especially when young and otherwise healthy. Only those with smoking-related severe diseases are likely to decline.

Life Insurance for Smokers vs. Non-Smokers Comparison

This table summarizes how non-smokers and smokers differ across the key factors influencing life insurance policies and options. The differences highlighted demonstrate the obstacles and limitations smokers face.

Factor	Non-Smokers	Smokers
Premium Costs	Lower premium rates	1.5-2x higher premiums
Underwriting Process	Typically, just a basic exam is required	Additional exams, fluid testing, and medical records review are more common
Maximum Coverage Amounts	Can potentially qualify for higher maximum benefits	Maximum benefit amounts are sometimes capped at lower
Life Expectancy	13-14 years longer on average	10+ years lower life expectancy
Policy Options	Access to a broader selection of policy types and riders	Selection is sometimes limited by the smoker’s status
Claims Payouts	Death benefits are paid smoothly when required	Undisclosed smoking risks denied claims
Carrier Classifications	Meet non-tobacco use definitions	Classified as a tobacco user with most insurers
Discounts and Rewards	Eligible for non-smoker discounts and incentives	Most discounts and rewards are unavailable
Accelerated Underwriting	Qualify for accelerated “no exam” programs	Typically excluded from “no exam” programs

Let’s examine key differences in costs and factors between life insurance for smokers vs. non-smokers

Premium Cost Differences

• Non-smokers pay the absolute lowest premium rates, especially if they are healthy overall.
• Smokers pay 1.5-4X higher premiums than non-smokers for identical policy types and terms.
• Even occasional cigar or marijuana use often triggers smoker rates.
• The price gap widens significantly after age 50.

Based on 10-year term life insurance policies, smokers pay significantly higher monthly premiums compared to non-smokers, with increases typically ranging between 175% – 275% across different age groups and genders, as shown in the table below:

Age	Sex	Smoker Monthly Premium	Non-Smoker Monthly Premium	Premium Increase for Smokers
25	Female	$57.76	$20.89	176%
25	Male	$73.08	$26.69	174%
35	Female	$77.89	$25.43	206%
35	Male	$93.15	$30.15	209%
45	Female	$163.94	$47.62	244%
45	Male	$223.19	$60.54	269%
55	Female	$363.81	$108.31	236%
55	Male	$523.94	$150.12	249%

Life Expectancy Differences

• Male smokers lose over 13 years of life expectancy compared to non-smoking men.
• Female smokers lose 14 years compared to non-smoking women.
• Quitting before age 40 reduces the risk of smoking-related death by about 90%.

Underwriting Differences

• Non-smokers often qualify with just a basic exam and see faster approvals.
• Smokers undergo much more scrutiny with extra exams, lab work, medical records reviews, and increased delays.

Coverage Amount Access

• Non-smokers can potentially qualify for higher maximum coverage amounts.
• Carriers often restrict policy sizes for smokers based on more outstanding claims payout risks.

Claims Payment Differences

• Death benefit claims from non-smokers generally pay smoothly when required.
• Hiding tobacco use can legally justify a carrier denying a claim payout.

Policy Customization

• Non-smokers get access to more policy types, terms, and supplemental riders.
• Smoking status can limit add-ons like disability riders and critical illness coverage.

Discount and Rewards Differences

• Non-smokers can take advantage of discounts on multi-policy bundles.
• Some insurers offer genetic testing rewards and smoking cessation incentives to non-tobacco users.

While the obstacles are higher, prudent shopping makes coverage attainable even for tobacco enthusiasts.

Smoker Strategies for Saving on Life Insurance

Here are some top tips for securing lower rates if you smoke:

• Compare quotes from at least 10 different life insurance companies. Premiums can easily vary by over 50% between carriers.
• Work with an independent insurance broker to access wider policy selection.
• Ask about any multi-policy discounts available by bundling your life coverage with things like home or auto insurance.
• Seek out life insurers known to be more nicotine and tobacco-friendly during underwriting, like Prudential, SBLI, and Mutual of Omaha.
• Consider a group life plan through your employer if available – most don’t penalize you for smoking.
• Buy your policy prior to age 50 – rates jump much higher past this threshold for tobacco users.
• Improve other modifiable health factors like diet, exercise, and minimizing alcohol intake.
• Weigh a smaller policy amount if premium costs are prohibitive for higher benefit levels. Some coverage is better than none.

The most impactful action is to quit smoking and all nicotine intake. However, you should know that coverage is accessible even to smokers who follow the right strategies.

The Life Insurance Quoting Process as a Smoker

The quoting process provides insurers with the vital details for evaluating your application and risk profile. Here’s what to expect:

Upfront Tobacco Use Disclosures

When comparing life insurance quotes, you’ll be asked for extensive details on current and past smoking habits:

• Products you use (cigarettes, vape, cigars, etc.)
• Frequency and volume of tobacco use
• Previous quit attempts and durations
• At what age do you begin smoking

Providing inaccurate details here can allow insurers to deny payouts later on. Being forthcoming upfront protects your family’s future claims.

Comparing Quotes from Multiple Insurers

Because premiums for smokers can vary widely between insurers, it pays to compare quotes from about 10 companies. Work with a broker to quickly access multiple carriers and isolate the lowest prices.

Preparing for Higher Application Scrutiny

Smokers should expect their application to face more rigorous verification and inspection than non-smokers. Be ready for requirements like:

• Blood, urine, or saliva testing to confirm nicotine presence
• Medical exam by an insurer-approved doctor
• Requests for medical records, prescription history, and physician visit notes
• Inspection of social media profiles for undisclosed tobacco references

While annoying, it’s best to comply so underwriters can accurately rate your present risk. Attempting to hide smoking only backfires when claims arise.

Getting Coverage After Recently Quitting Smoking

Many smokers looking to obtain life insurance in Canada are in the process of quitting or recently quitting. However, successfully abstaining from smoking for 12+ months is typically required before qualifying for non-smoker premium rates.

If you’re smoke-free for under a year, disclose yourself as a smoker when getting quotes. Attempting to claim non-smoker status almost always gets disproven during underwriting.

Timelines to earn non-smoker rates when quitting smoking include:

• Manulife: 12 months smoke-free
• Sun Life: 12 months, no nicotine
• Canada Life: 1-year tobacco-free
• RBC Insurance: 12 months, no cigarettes
• Industrial Alliance: 1 year without tobacco
• Empire Life: 12 months smoke-free
• BMO Insurance: 1-year nicotine-free
• Desjardins: 12 months no tobacco use
• SSQ Insurance: 12 months of abstinence

For e-cigarette users, timeframes can extend to 3 to 5 years nicotine-free. Every insurer has distinct parameters, so explore specifics before applying after quitting smoking.

And don’t make the mistake of postponing coverage until you’ve quit tobacco for 12 months. The risks of developing a new health condition while waiting can actually spike your rates later. Lock in guaranteed smoker premiums now, then request to be re-rated as a non-smoker after hitting your 1st anniversary smoke-free.

Consequences of Hiding Smoking from Insurers

Given the steep smoker rate hikes, hiding tobacco use is tempting but highly hazardous:

Claim Denial

Undisclosed smoking discovered after death allows insurers to legally deny life insurance payouts to your beneficiaries – even if the death cause is unrelated.

Policy Rescission

If investigations uncover nicotine deception, the insurer can void your policy altogether. Premium refunds would be partial and provide no future safety net.

Blacklisting

Having a policy cancelled due to smoking fraud makes obtaining affordable future coverage nearly impossible across the industry. You become essentially uninsurable.

While dishonesty may temporarily save money, it can catastrophically disrupt future claims. Therefore, disclose all tobacco use accurately upfront.

How Insurers Detect Hidden Smoking

Given the financial incentives to conceal tobacco use, insurers thoroughly verify applicant details:

Fluid Testing

Blood, urine, saliva or hair are tested for nicotine byproducts like cotinine, exposing use within the past few weeks – even secondhand smoke.

Medical Records

Doctor’s notes frequently document patient smoking habits. Pharmacy profiles also reveal smoking-cessation medication prescriptions.

MIB Database Checks

This clearinghouse contains your personal tobacco use history across past life, health, and disability applications with any insurer. Discrepancies get flagged.

Rx History Evaluations

The pharmacy benefit manager records your medication history in detail. Filling nicotine gum, patches, Chantix, or related scripts points to omitted nicotine use.

Social Media Screening

Photos, videos, and textual references indicating undisclosed tobacco habits appear regularly on social platforms. These validate nicotine deception.

The bottom line is that life insurers have extensive resources to uncover hidden smoking activity and will leverage them to minimize payout risks. Total transparency remains the only viable path.

Conclusion

Smokers absolutely can obtain reasonably priced life insurance but should expect higher premiums and restrictions compared to non-tobacco users. With prudent shopping aided by an independent broker, ample affordable coverage is accessible.

Always disclose smoking honestly upfront – hiding use often prompts denied claims later on. Consider group life, guaranteed issues, and smoker-friendly carriers as cost-saving options. Talk to your doctor about tobacco cessation to unlock ultra-low non-smoker rates eventually.

Securing some protection trumps all else, even if life insurance premiums hurt initially. Smokers must maximize coverage within the budget to protect what matters most – the family.

FAQs comparing life insurance for smokers vs non-smokers in Canada

Article Sources:

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