How Much Money Can You Save on Insurance by Quitting Smoking?
Quitting smoking is obviously good for your health, but it can also be good for your finances. In addition to saving money on cigarettes, you will also save on insurance, and NerdWallet points to your number.
They processed some of the data and found that after quitting smoking for a year, ex-smokers’ life insurance rates dropped significantly:
Average smoking rates for men and women are $ 2,025 and $ 1,550 per year for a $ 500,000 20-year term life insurance policy. Quitting smoking for a full year lowers the average premium to $ 797 for men and $ 659 for women. After two years of quitting smoking, rates dropped to $ 670 and $ 543.
According to NerdWallet, it takes about five years of no tobacco smoke for rates to be as low as those for non-smokers. A few more key takeaways and takeaways:
- Switching to a different nicotine product will not help. Most people who use nicotine gum, patches, lozenges, nasal sprays, or e-cigarettes still pay life insurance to smokers.
- Don’t lie on your life insurance claim. Your medical record and life insurance medical examination, which includes blood and urine tests, will most likely reveal your smoking habit. And if you are a former smoker, your insurer can check the amount of time you have not smoked by checking your past life and health insurance claims. Misleading your insurance company is considered fraudulent and could jeopardize the payment of death benefits to your beneficiaries.
- You can ask your insurer to reconsider the rate if you quit smoking after purchasing a policy for smoking rates. The company will reassess your health and smoking status and possibly offer you a higher smoking rate. There is no risk for you. Even if you have other health problems during this time, your rate cannot be increased.
In another article on the cost of smoking, NerdWallet cites e-health research that found that smokers pay an average of 14% more in premiums. Bernard Health advises that many companies will lower your rate if you have not used tobacco in the past 12 months.
NerdWallet uses several lesser known ways that smokers pay more for their habit, so be sure to check out the full post at the link below.
Smoking Cessation Life Insurance | NerdWallet
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