How Smoking Affects the Price of Life Insurance

There are many different factors determined a person’s eligibility for a life insurance policy. The more high-risk behaviors an individual has in their medical health history, the higher premium that individual will pay. The deciding factor is whether or not this individual is likely to be passing away soon after taking out the policy. If the insurance company decides that you are a risk to die quickly, the chances of you getting the maximum value of the policy are greatly diminished.

Scientific research has continually shown that smoking is akin to being  a very large factor to various pulmonary diseases. Furthermore, the risk for cancer elevates nearly 75 percent when a person is an active smoker. Breathing disorders such as asthma and other long functioning problems occur in over 50 percent of active smokers. When a life insurance policy finds out about a tendency of an individual to use tobacco based products, they become less likely to want to be involved in providing that individual with burial insurance.

The insurance company is in the process of trying to make money off of the chance that someone will survive. Eventually, everyone dies, but the profile of their individual health will have a direct Impact on the longevity of the insured individual. Smoking has no long-term positive health benefits, therefore a person that is constantly in the use of cigarette is only doing damage to their overall health. When the insurance company is aware of this reality, that individual automatically becomes a liability and the risk factor.

The length of the addictive behavior, along with the stages of disease caused by the smoking will have a direct impact upon the premiums paid for the policy. For example, a light smoker will pay significantly less than someone that smokes three packs per day. Furthermore, a person that has the early stages of lung disease or abnormal cell development will pay significantly more than a person that has not been adversely affected by their smoking.

More than anything, insurance is a business. This means that insurance companies must look at the risk factors associated with each individual client. If the statistical odds do not work in favor of that individual being a worthwhile investment, the insurance company has two options. One, they can deny the individual service and lose any potential income from the client. Secondly, the insurance company can charge the maximum premium for a high-risk individual, thereby maximizing their profitability in the event of a quick death.