You realized that it was time to secure a life insurance policy or update an existing one but now you are either scratching your head or are very angry with the fact that you’ll be paying a fortune for life insurance.
This may be a for a simple fact that most cigar smokers get lumped up in the same category as cigarette smokers which puts you at 60% or more increase in premiums for a tobacco rating.
And Yes, cigar smoking is not as dangerous for your health as cigarettes but unfortunately over 90 percent of companies see tobacco use as white or black with no in between.
There is still hope since a few companies are taking a stand and offering nonsmoker rate class for people who smoke cigars. Luckily for you, we are an independent life insurance agency and happen to work with all the companies that offer this. It is important to note that each company has their own guidelines based on the frequency of your cigar use and your overall health. So let’s dig deep and review all the important information you need to know.
Cigar Smokers and Life Insurance
Most individuals come to us after they have been given a smoker rate from their life insurance provider. Even though on the application they list themselves as nonsmokers since they are under the impression the question is referring to cigarettes only when they take their exam cotinine which is a byproduct of nicotine use shows up in their labs. And just like that, the initial premium that was quoted goes up by two to three times. Not only does it look like you were trying to lie but it also can have even more devastating effects if you were to slip through the cracks as a nonsmoker and pass away within the 2 year contestability period.
The reason is that if you were to die from tobacco-related death the insurance provider would investigate and if they found out that you were a cigar user while you marked “No” on the application it gives them grounds to deny the claim. So although it may seem like a small lie it is in your best interest to disclose it to your independent agent and have them find you an appropriate company that is cigar smoker friendly.
As a cigar smoker you need to understand that regardless of what tobacco product you use like cigars, e-cigarettes or chewing tobacco, the majority of insurance carriers will hit you with a tobacco rates class. This is especially true with the property and casualty companies like StateFarm, Allstate, and many others, so before you decide to call the company that is like a good neighbor remember they won’t be there for you with cigar use.
Why Does Smoker Versus Non-Smoker Classification Matter?
Life insurance carriers use many different factors to determine the cost of your life insurance premium, including age, overall health, and past medical history. One major factor that will influence the cost of your premium, however, is whether you are categorized as a smoker or a non-smoker. Smokers pay significantly higher premiums, especially if they have other health factors that the carrier will take into account as their risk class. It’s always better to be a non-smoker with a life insurance carrier because it will greatly reduce the premium you pay regardless of whether you are getting term life insurance or lifelong coverage through whole life or universal life.
Still not convinced? Let’s look at an individual who is an occasional cigar smoker who took a policy with his local agency and is okay paying the tobacco rate(client A) versus a smart consumer(client B) like yourself who hit the web for answers and better deals. Both individuals are 40-year-old successful males who are securing a 30 Year Term Policy with a $1 million dollar face amount.
Client A
Secured a policy with the most competitive provider and got a smoker rate which ended up costing him $5423 annually. So over the term of the policy, he would end up paying out $162,719.70
Client B
Secured a policy with one of the go-to companies for cigar use and was able to test positive for nicotine while still locking in a rate of $2025 annually. Unlike client A, client B paid only $60,750 for the life of the policy. That’s a $101,969.70 difference, ouch! Now you can see why it is absolutely crucial to do your homework and let an agency like ours help you get nonsmoker rate.
Cigar Use and Getting Non-Smoker Rate
Determining your eligibility as a cigar use comes down to the frequency of use. For classification, we will label it as a Heavy, Moderate and Occasional user. So let’s see what you can expect with each type of use:
Heavy User
If you smoke cigars every day, it’s likely that the carrier might consider you a smoker regardless of whether you use cigarettes or other nicotine products in conjunction with your cigar smoking. So for anyone smoking cigars more than 52 per year, you simply need to bite the bullet and pay smoker rates. Even in that case, you should shop around since some companies have better smoker rates than others.
Moderate User
If you have one cigar per week, we have some great news for you. You can secure a “non-smoker standard class” while being able to test positive for nicotine. There is only one company that will do this in the entire marketplace and we work with them so call us for more details.
Occasional User
If you only enjoy a cigar every once in a while, however, you could be classified as “preferred non-smoker” with many companies. I’d say anything under 12 cigars per year you can easily apply for life insurance with any top company we represent like American General, Voya or Banner Life. ( Just remember that you can’t test positive for nicotine on the labs with these companies so abstain from cigars for about a week)
Again, it’s crucial here that you don’t lie about your habit. Being a smoker can actually lead you to have premiums that are twice as high as your counterparts who are classified as non-smokers during the application process. If you are not upfront about your habit from the getgo, the carrier might classify you as a smoker anyways and leave you having gone through the application process only to learn that your premium is much higher than what you thought you would be paying.
Another thing to consider as you move forward with getting a life insurance quote is your health and the other factors the company uses to determine your rating. For example, certain companies might give you “fit credits” to reward you for good behavior. This can include lab results that are in the average or healthy range for a number of tests, physical activity that you partake in regularly, or other carrier-specific recommendations that can help to bring your premium down. If you’re wondering more about this and how you might be able to get fit credits, contact your life insurance agency to discover more about the process.
Work with Us!
If you are a cigar smoker who enjoys the occasional cigar or are a moderate user, the best decision you can make is regarding what life insurance agency you work with. An experienced and professional agency will have staff on hand to answer your questions and they will also be knowledgeable about what carriers will look at your application most favorably.
Agencies with years in the business know how to present a total picture of you to a carrier and can help ease your fears by providing you with a lot of information at the outset and during the application process. Don’t underestimate how much working with a great agency can be helpful as you apply for life insurance coverage.
If you enjoy a cigar every once in a while but don’t believe you want to pay the premiums for a tobacco smoker, reach out today to learn more about the right carriers and the policies they have in place to give you a favorable life insurance rating and premium. Your life insurance can be cost-effective and comprehensive at the same time. Welcome to InsureChance!
