Life Insurance for Smokers: What You Need to Know

Smoking rates in Canada have fallen dramatically over the past 25 years. In 1999, 25 per cent of Canadians smoked daily or occasionally. By 2022, the number of smokers had dropped to 10.9 per cent. It’s an encouraging trend, but smoking can be a hard habit to kick. It’s also a hazardous one – smoking is linked to more than two dozen diseases, including cancer and heart disease.

The risks associated with smoking are many fold and smokers pay higher premiums for life insurance. However, if you’re a smoker or use nicotine, it doesn’t mean you can’t get life insurance, or that you’re stuck paying higher rates forever.

Here’s what smokers need to know about life insurance, how insurers calculate premiums, why it’s important to be honest about your smoking status, and how quitting can impact your premiums.

Key takeaways

• Life insurance provides a one-time, tax-free payout to your beneficiaries after your death

• The amount you pay (your premium) is based on factors such as your age, sex, health, smoking status and lifestyle factors

• Premiums for smokers are almost double those of non-smokers

• It’s critical to answer your smoking status truthfully or your policy may be voided or the death benefit not paid out

• After you’ve quit smoking for 12 months, you can apply for non-smoking rates for your life insurance policy

• Even as a smoker, it’s still possible to protect your family with life insurance

How life insurance works

Life insurance provides a one-time, tax-free death benefit to your chosen beneficiary when you pass away. The premium, or the amount you pay monthly or annually, is based on risk factors such as your age, sex, health and lifestyle. Some factors, like age, are immutable, which is why premiums are typically cheaper for younger policyholders. Others, such as diet and smoking can be modified and improved over time. In short, the healthier you are, the lower your life insurance premiums should be.

Why does smoking affect insurance premiums?

Smoking has a significant impact on your insurance premiums because of the high correlation between tobacco use and disease.

Here are some statistics on smoking from the Canadian Cancer Society:

• Smokers have a higher risk of developing at least 16 different types of cancer

• Unless they quit, up to half of smokers will die from smoking-related illnesses

• Cancer is the leading cause of death in Canada and about 72 per cent of lung cancer cases are due to smoking tobacco

• Tobacco is the number one preventable risk factor for disease and death in Canada

When an underwriter evaluates your insurance application, they assess the level of risk the company takes on to provide coverage. Because smokers are more likely to experience smoking-related diseases and illness, this translates into more expensive insurance premiums.

What qualifies you as a smoker on a life insurance application?

Typically, a life insurance company considers you a smoker if you’ve smoked within the last 12 months. It’s important to note that the term “smoking” is defined broadly for insurance purposes and includes:

• • Any form of tobacco, which includes cigarettes, cigars or cigarillos (other than one large cigar per month), pipes and chewing tobacco

  • E-cigarettes, vaping products, water-pipe, nicotine products

  • Smoking cessation products, such as nicotine gum or patches

  • Betel nut leaves, more than once per month

Underwriters may use different methods to verify your smoking status depending on the type of life insurance you apply for:

Guaranteed acceptance life insurance: Does not require any medical exam or health questionnaire, but you still need to disclose your smoking status.

Term life insurance: Provides coverage for a set period of time (between 10 and 40 years), may or may not require a medical exam, depending on your age, health and the amount of coverage, though you are still required to disclose your smoking status.

Whole life insurance: Provides coverage for the rest of your life, requires both disclosure of your smoking status and a medical exam.

If a medical exam is required, a paramedical professional will ask questions about your health and lifestyle. They’ll take a urine and/or blood sample to test for nicotine and drugs, as well as other health markers, such as glucose and cholesterol. For larger policy amounts, you may need to complete a more extensive medical exam that includes other investigations such as an ECG stress test, chest X-ray and a detailed review of your medical records.

Regardless of whether you self-report your smoking status or if you undergo a medical exam that will specifically test for it, it is important to be honest during your application even though your premiums will likely be higher. Failing to disclose that you are a smoker could result in your application being denied or your policy not being paid out when your loved ones need it most.

Is cannabis use considered smoking?

Since cannabis was legalized in Canada in 2018, life insurers have been determining how to best underwrite policies for cannabis users, especially as the long-term health effects of cannabis are not as conclusive as tobacco usage. In most cases, whether you’re classified as a smoker depends on your consumption habits. If you smoke or vape cannabis, you are more likely considered a smoker. However, if you consume edibles or oils, for example, you are less likely to be considered a smoker.

There are additional considerations for medical cannabis users as the underlying condition (rather than the cannabis itself) may have a greater impact on your premiums. Like with conventional smoking, it’s important to be honest about your cannabis usage when you complete your life insurance application.

How much more do smokers pay for life insurance?

Smokers pay almost double the premiums for life insurance compared to non-smokers, with all other factors being equal. This comes as no surprise given the strong correlation between smoking and adverse health outcomes, including cancer.

Compare the difference in premiums between a smoker and non-smoker looking for 20 year of term life insurance quote:

Person	Non-smoker	Smoker	Cost per year	Cost per policy
Male, 40 $500,000 coverage	$44.10	$155.52	$1,337.04	$26,740.80
Female, 40 $500,000 coverage	$32.63	$104.40	$861.24	$17,224.80

Tips for applying for life insurance as a smoker

Be honest on your application: Lying on your application about your smoking status is fraudulent and can result in your policy being declined, cancelled or the death benefit not being paid out when loved ones need it most. 

Adopt a healthier lifestyle: Your smoking status is only one factor an underwriter considers when evaluating your health status. Maintaining a healthy weight, avoiding processed foods high in sugar, fat, and salt, and engaging in regular physical activity can all help improve your health and, in turn, lower your insurance premium.

Consider term life insurance as a more affordable option: Term insurance provides simple, lower-cost coverage, and may not require a medical exam.

Work with an accredited broker: An accredited life insurance professional can help you find the right coverage for your unique needs. If you’re unsure how your smoking status may affect your application, they can help answer any questions.

Will my life insurance premium change if I stop smoking?

While nicotine is addictive and smoking can be a tough habit to kick, it’s never too late to quit. Heart rate drops within a few minutes of your last cigarette and within one to two years your risk of heart attack drops dramatically, according to the American Cancer Society. Your risk of lung cancer is halved after 10 years after quitting.

Although life insurance premiums are higher for smokers, once you quit, you may become eligible for non-smoker rates. Typically, you’ll need to complete a medical questionnaire and sign a declaration that you’ve been a non-smoker for at least the last 12 months. (As smoking includes nicotine patches or gum, this includes not using any smoking cessation aids during this time, too.)

You’ll also need to confirm there have been no significant changes to your health, and you’ll likely need to provide a blood or urine test to prove there is no nicotine in your system.

Once the insurance underwriters review your application and confirm your eligibility, you should be switched to lower, non-smoker rates. However, if you decide to quit after a cancer diagnosis or a heart attack, for example, your premiums will likely not reduce because you’re still in a high-risk category due to a new underlying condition.

All of this is why it’s a good idea to quit smoking while you’re still healthy.

Next steps

Smoking carries a significant cost, not only to your wallet and your life insurance premiums, but also to your health. And while quitting feels hard, it is possible. Talk to your heath provider for guidance.

Once you’ve decided to quit, support can more than double your chances of success. The Smokers’ Helpline offers support and resources. The Government of Canada also maintains a list of provincial and territorial services, such as Tobacco Free Nova Scotia or QuitNow in British Columbia.

Even if you’re not ready to quit smoking, you can still protect your family with life insurance. Safeguarding their future is something you can do today, even as you work to build a healthier future for yourself.

FAQs about smoking and life insurance

Why should you buy life insurance as a smoker?

Even if you’re a smoker, you can still buy life insurance. While your premiums will be significantly higher, life insurance still provides financial protection to your beneficiary in the event of your death. It is critical, however, to be honest about your smoking status when you apply; otherwise, you risk your policy being cancelled or the benefit not being paid out.

What happens if I lie about being a smoker on my life insurance?

Life insurers verify the information on your application through a variety of methods, including medical questionnaires, medical exams, lab results, and sometimes by accessing your medical records. Underwriters use this information to determine your risk level, whether you qualify for coverage, and what premium you will be charged.

If your insurer discovers that you have lied about being a smoker on your life insurance application (or any other pre-existing conditions), your insurer could decline your coverage, modify your policy with certain exclusions, or offer coverage at a higher premium. Your insurer will also likely report your omission to the Medical Information Bureau as it’s considered fraudulent. If it’s discovered that you lied about your smoking status after your death, your insurer could refuse to pay out the death benefit to your beneficiaries.

Does smoking void a life insurance policy in Canada?

Smoking can void a life insurance policy in Canada if you lie about your smoking status when you apply, or become a smoker after you apply for insurance as a non-smoker. Misrepresenting your smoking status constitutes fraud, and can void a life insurance policy, meaning the death benefit is not paid out.

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