If you smoke cigarettes, you’ve probably been told time and time again about the ill effects the habit can have on your health, including shortening your expected lifespan. But did you know that smoking can cost considerably more than just the packs that you regularly buy? Apart from medical expenses associated with smoking-related illnesses, the habit can also raise your home, health and life insurance expenses. In this article, we’ll take a deeper look at why smoking affects your life insurance premiums.
To understand how life insurance premiums are calculated, try to think from the insurance provider’s perspective. A healthy individual with no endangering habits has the highest chance of living a long life, meaning that he or she is a good investment because premium payments will continue for years to come. However, a smoker is much more likely to develop a serious, life-threatening illness earlier on, making him or her a weaker investment because an earlier death means fewer premium dollars. This may be a cold viewpoint, but insurance providers have a business to run after all.
Because smoking is a voluntary habit that has been proven to cause serious illness, smokers may find it more difficult to find life insurance. Some insurance providers may refuse you coverage. Others will simply charge you more for coverage—up to three times more. Your independent insurance agent can shop around on your behalf and find you coverage that fits within your budget.
Remember, when working with your agent, it’s important that you’re truthful about your smoking habit. If you’re caught lying about it, your insurance provider may drop your coverage on the grounds of insurance fraud, wasting all of the premium dollars you’ve paid up to that point. However, be sure to let your agent know if you’ve quit smoking, because you may be eligible for normal life insurance rates just one year after quitting.
We’ve got your back. Call Raymond Longoria Insurance at (956) 581-1034 for more information on Laredo life insurance.