When it comes to California life insurance and cigarette smoking, there is no one carrier or brand of coverage that one can promise as being the right value. Although rates for smokers are higher than those for people who do not smoke, the difference is raised even more as one grows older. Age and gender directly affect which carrier is the best value.
What should you talk about when it comes to your smoking habits? The short answer: always be honest, as it is in your best interests to do so. Nicotine and cocaine are two drugs that insurance companies always test for. These are very sophisticated tests and can tell the difference between current use and second hand smoke. Do not forget that there is often a two year contestability clause in each policy that deals with fraud in the application.
Is there any company that provides non-smoker rates to smokers? Some carriers will give smokers motivation to stop smoking by allowing premiums at a standard non-smoker rate for three years. This only pertains to permanent policies. If you have quit during that time, you may continue with the lower premium, or risk an increased smoker rate.
There are major differences between cigarette smokers and cigar or pipe smokers, and not all insurance companies consider the latter to fall into a smoker’s category. This is also the case for smokers trying to quit through the use of a nicotine patch.
Most insurance companies will let a smoker obtain a non-smoker rating after one year of no nicotine use, which can improve as time goes on. A good, professional agent will discuss your tobacco history in depth preior to suggeting the best value for your specific needs.
In my prior experience, most smokers do not wish to continue. If a previous smoker wants to be considered at non-smoker rates for term insurance, he or she needs to have ceased smoking for at least one year. If you have recently quit, inform your physician and ask that an appropriate notation be made in your record.
Considering a 10 year term policy may be a good idea if you are in this situation. The good part about this policy is that it is usually less expensive that a shorter term one, and there is no reason to pay for a longer guarantee.
Do not forget that you will generally be able to get a better rating in a few of years, and a lower premium to boot, despite the fact that you are older. Consequently, in most cases, there is no reason to pay for a longer guarantee on a policy you intend on replacing.