If you’re considering life insurance, it’s critical to understand the impact that the use of tobacco and other nicotine products can have on your coverage. Why? When applying for life insurance, it’s standard practice for applicants to undergo a health assessment to determine current health status and identify lifestyle factors that may impact their health — and therefore insurance risk — in the future. An important part of the assessment is disclosure of tobacco or nicotine product use. While cigarettes are often the first product that comes to mind, many are unaware that various other tobacco and nicotine products can significantly impact health ratings and, ultimately, your life insurance premiums or even insurability.
Products that life insurance companies pay attention to encompass a wide range of tobacco and nicotine products, including:
- Cigarettes
- Pipes
- Hookah
- Cigars
- E-cigarettes and vaping
- Smokeless products such as nicotine gum, nicotine patches, nicotine pouches, and chewing tobacco
Insurers categorize applicants based on risk factors associated with each product, and in many cases, users are categorized as higher risk. And even though your health may not have been impacted yet, insurance companies may assume use of these products will have an impact on your health in the future — and that can impact your coverage options and premiums today. Life insurance companies will commonly determine this based on the following:
- Past and current use of tobacco and nicotine products.
- Current frequency.
- Type of use.
- The results of a urine test performed during the insurance exam.
If you’re an infrequent user of certain products, the insurance company may consider you a nontobacco/nicotine user. However, if you’re classified as a tobacco and/or nicotine user, you’ll have substantially higher premiums. The criteria used to determine whether someone is a user or nonuser and the associated risk classification can vary among insurance providers.
Note that it’s essential to fully and truthfully disclose your tobacco and nicotine product use during your application process. If an insurance company finds evidence that important information on tobacco or nicotine use wasn’t disclosed or was misrepresented, they may rescind the contract or deny the claim when your beneficiaries need it the most.
