What are the Effects on Term Life Insurance Benefits If a Smoker Eventually Quits?

Smokers are rated by a life insurance company as a higher risk than non-smokers. Because of this, a smoker's term life insurance premiums are higher than a non-smoker's premiums.

Significance

Term life insurance companies often allow you to re-adjust your risk rating if you quit smoking. This requires that you verify that you have quit smoking and may require additional underwriting to verify that you are no longer smoking. The insurer can verify if you're still a smoker using either a saliva test, blood tests, urine samples or a special breathalyzer.

Time Frame

In most cases, you must remain smoke-free for at least 12 months to receive a rate adjustment and to be considered a "non-smoker" by the life insurance company.

Considerations

Giving up smoking can be difficult. However, the decrease in your term life insurance premium payments can be substantial over the life of your insurance policy.

References

• "Life Insurance"; Kenneth Black, Jr., Harold D. Skipper, Jr.; Prentice-Hall Inc.; 1994
• "Practicing Financial Planning for Professionals (Practitioners' Edition), 10th Edition"; Sid Mittra, Anandi P. Sahu, Robert A Crane; 2007