Life and Health Insurance both protect people, rather than property (cars and houses). The insurance company looks at the individual applicants and decides “how risky are you?” Every company uses slightly different methods to calculate this, but there is one universal rule: Tobacco users get charged more.
There’s plenty of research showing the known dangers of tobacco use. Insurance companies have read this research and decided these individuals are more likely to cost the insurance company money. Healthcare.gov says “Insurers can charge tobacco users up to 50% more than those who don’t use tobacco.” Life insurance companies apply similar treatment.
If I quit my tobacco use today, how long until I am clear of the surcharge? Generally 12 months, which is pretty astounding if you think about it. By quitting your tobacco use, the cost of health and life insurance will drop at the same time as your weekly tobacco purchases are eliminated. Your financial picture three years down the road is looking a lot cleaner.
Smokeless tobacco is a hot topic right now, with companies split on whether or not they should be charged more. Keep an eye on the news as lawmakers decide the fate of these products.
**Contact a Behnke Insurance Agent for details**