Can you get an insurance if you’re a smoker or a tobacco user? Yes, definitely. But brace for a higher premium.
Smokers always pay more insurance premium than the non-smokers, but things got worse for smokers with the passage of The Patient Protection and Affordable Care Act in 2010.
With the new law, the insurance companies are now empowered to charge smokers with a premium that’s 50% higher than those who don’t smoke. This is called the tobacco surcharge or tobacco rating.
It is worth noting that the tobacco rating became a contentious issue. Some believe that higher premiums will encourage smokers to kick the habit and will discourage more to even try smoking. Others maintain that it only disenfranchises low-income smokers from getting an insurance coverage.
Most states show a strong implementation of the tobacco surcharge, but not all. In some states, the insurance companies are charging below 50%, while in the others, they don’t bother to use the tobacco rating at all.
But here’s the fact: even without the latest law, your smoking habit affects your insurance. With or without the tobacco surcharge, you’ll be charged more with a higher premium.
The reason is obvious. As a smoker, your mortality risk or chance of dying from smoking-related illnesses is higher than non-smokers. As a smoker, you are prone to suffer from many types of cancer, cardiovascular diseases, respiratory diseases, and other serious health risks.
According to the Centers for Disease Control and Prevention, cigarette smoking is the top preventable causes of death in the country. In fact, the agency says that smoking kills 480,000 Americans each year.
The CDC also emphasized that if you add all the recorded deaths caused by HIV infection, car accidents, shooting incidents, and alcohol and illegal drug use in the country every year, the number would still pale in comparison to the number of people who died because of smoking.
With all these things considered, keep in mind that it’s not as if you no longer have an option. Applying for a life insurance may not be easy, but certainly, you can still get a policy even if you’re a smoker.
Now, what if you’re looking for a non-medical insurance? Is it possible?
Again, yes it’s possible. The good news is, there are many insurance companies right now who offer a no exam life insurance for smokers.
It should be noted, however, that although you would not have to undergo a medical exam, most insurance companies will still pull your medical history and evaluate your overall your health. Nevertheless, there are also insurance companies who allow applicants to skip a medical exam and medical history assessment, but these are for guaranteed issue policies.
Best No Exam Life Insurance Companies for Smokers
Take note that most of no exam life policies actually have risk classes for smokers. Basically, there are two rate classes for smokers: the preferred smoker and the standard smoker.
The preferred smoker is someone who occasionally smokes. You will still be classified as a preferred smoker even if you’ve just quit.
To be able to get the best non-smoking rate, you must have kicked the habit at least five years from the day of your application. To get the second-best rate, you must have stopped smoking for at least three years. And to get the standard non-smoker rate, you must have quit smoking at least one year.
In other words, the preferred smoker class is for people who otherwise would have qualified for the preferred rates. If you have extreme health issues, you may want to consider life insurance with no questions asked and no waiting period.
The standard smoker is someone who still smokes and uses any types of tobacco regularly. If you’re placed into this category, there’s a safe assumption that you’re not as healthy as preferred and you’re someone who otherwise would have fallen into the standard non-smoker classification.
Remember, whatever tobacco health class you’re in, your classification will influence the amount of insurance premium that you’re going to pay.
If you’re looking for an insurance carrier that provides a no exam life insurance policy for smokers, then these list of options might help.
Sagicor Life Insurance Company
The Sagicor Life Insurance Company was one of the many subsidiaries of Sagicor Financial Corporation Limited (SFC), a multinational insurance group with a strong business presence in Latin America and the Caribbean region.
The US-based Sagicor Life Insurance Company was the former American Founders Life Insurance Company (AFL) until its acquisition by Sagicor from Vesta Insurance Group, Inc. in 2005. The deal sealed SFL’s successful expansion and entry into the American insurance market.
Today, the Sagicor Life Insurance Company is a licensed insurer in 45 states, including the District of Columbia. It operates out of Scottsdale, Arizona and Tampa, Florida.
Sagicor has billions of assets which make it very strong and stable financially. A.M. Best gives this company a rating of A-, which is classified as excellent.
In terms of insurance products, the Sagicor Life Insurance Company provides annuities, permanent life insurance (including universal life and whole life insurance), and term life policies.
Sagicor’s no exam policy offering can be found in its Sage Term life insurance. With this product, you can get a coverage and choose to pay the premium for a fixed term of either 10, 15, or 20 years. This policy is convertible to permanent life insurance. The no exam underwriting is issued to people whose age is between 18 years old and 65 years old. If you’re older than 65 years old, the no exam policy no longer applies and you might already need to undergo a fully underwritten process.
The available policy amount for the no exam Sage Term policy depends on age. If you’re between 18 years old and 45 years old, you may be eligible for a coverage amount worth $50,000 up to $1,000,000. If you’re between 46 years old and 55 years old, you can get an amount worth 50,000 up to $750,000. If you’re between 56 years old and 65 years old, your coverage amount would be between $50,000 and $500,000. If your age is between 66 years old and 75 years old, you can get an amount that ranges between $50,000 and $500,000.
In terms of additional protection, Sagicor’s Sage Term policy provides the so-called Accelerated Benefit Insurance Rider which you can get for free. If you have a terminal illness or if you are confined to a nursing home facility, you can use this benefit to cover the costs. Take note that this accelerated benefit will only be applicable if your confinement reached a period of 90 consecutive days and you are expected to be in the facility until your death.
For a price, the Sage Term insurance also provides additional protection. If you think you need to, you can avail of an accidental death benefit rider, children’s term rider, and waiver of premium rider.
If you’re a smoker and looking for a no policy, then Sagicor’s Sage Term might be a good option. Aside from the preferred non-tobacco and standard non-tobacco health risk classes, Sage Term’s health classification for tobacco users includes preferred tobacco, standard tobacco, and rated tobacco. This means that you wouldn’t have any problem getting a coverage even if you smoke. Take note these health classifications are available to anyone regardless of age. It must be noted, however, that the 15-year term non-tobacco and tobacco classifications are only limited to age 70. For the 20-year policy coverage, the non-tobacco is limited to age 65 while the tobacco classification is limited to age 55.
Now, is it easy to get Sagicor’s no exam Sage Term policy coverage?
When it comes to the underwriting process, Sagicor’s no exam policy is fast and you can easily get an approval as long as you passed a very simple evaluation. In fact, you will get a decision in just a matter of minutes.
The reason behind Sagicor’s quick underwriting process is its use of an automated underwriting system called Accelewriting.® Because everything is done electronically, there will be no need for a medical exam or telephone interviews. You will have to answer a few health-related questions though. But unless your particular case warrants it, normally, no other documents will be requested as well.
Savings Bank Life Insurance Company of Massachusetts (SBLI)
After 111 years in the business, the Savings Bank Life Insurance Company of Massachusetts remains one of the most stable insurers in the United States. After being chartered by the legislature in Massachusetts in 1907 through the efforts of its founder, Louis D. Brandeis (who later became a U.S. Supreme Court Justice), the company has grown considerably and emerged as the biggest insurance companies in Massachusetts. It also, later on, became known as the top provider of low-cost insurance in the state.
In 1992, SBLI became a stock insurance company by virtue of a legislative act. In 2010, the SBLI converted into a mutual insurance company after it paid $57.3 million to its shareholder’s banks. As a result of the conversion, the company is now owned by its policyholders and renamed as The Savings Bank Mutual Life Insurance Company of Massachusetts. Today, it is a licensed insurer in 49 states and the District of Columbia. Financially, SBLI is very strong and consistently keeps its excellent A rating from A.M. Best.
Unlike the other insurance carriers with a varied portfolio of insurance products, SBLI focuses on providing life insurance, which is either a term life insurance or a permanent policy (whole life insurance).
SBLI’s best no exam medical policy is offered through its guaranteed level premium term policy. With an available face amount that ranges between 100,000 and $500,000, this highly competitive, low-cost term life insurance is available to anyone whose age is between 18 years old and 60 years old.
As a level term policy, this type of insurance guarantees that the premium that you’re going to pay every month will remain the same throughout the coverage period of 10, 15, 20, 25, or 30 years. When the policy expires, you will have the option to extend the coverage and convert it to a whole life insurance or a universal life insurance. Additional protection is also offered including an accelerated death benefit rider, waiver of premium, and child rider.
When it comes to underwriting, SBLI’s insurance application and approval are fast and simple. Through its Accelerated Underwriting program, anyone can easily apply and get a coverage without ever going through a medical exam. A simple telephone interview will be conducted, though.
SBLI’s Accelerated Underwriting is available to any applicant whose age is between 18 years old and 60 years old and to those who are seeking a term life coverage of not more than $500,000. With this hassle-free underwriting process, you can get approved immediately or get a decision at least 7 days after you have submitted your application.
If you’re a smoker or you’ve just previously quit, you’re in luck with SBLI. This company is one of the very few insurers that provide a no exam policy that includes all health classes.
5 Star Life Insurance Company
Founded in 1996, the 5Star Life Insurance Company or 5Star Life has long been affiliated to the Armed Forces Benefit Association (AFBA) as the main underwriter of insurance products for the members of the armed forces and their families. Although this association with AFBA remains strong up to this day, 5Star Life expanded its services and opened itself to other markets, including the worksite/group and senior markets.
Although 5Star Life is relatively young compared to the other insurance companies, it is very stable and strong financially. It has an excellent A- rating from A.M. Best. The company boasts of 800,000 issued life insurance policies and an insurance in force that amounts to $41.8 billion.
The 5Star Life Insurance Company (5Star Life) is based in Alexandria, Virginia. Just last year, it relocated its statutory office from Baton Rouge, Louisiana to Lincoln, Nebraska.
In terms of its insurance products, the 5Star Life provides supplemental life insurance as well as individual life insurance policies. These policies include the voluntary life insurance, group life insurance, critical illness insurance, accident insurance, and healthcare indemnity insurance.
For its no exam insurance product, the 5Star Life offers a simplified life insurance policy called the Family Protection Plan with Terminal Illness. This policy is unique in a way because it runs up to 100 years. This means that you can enjoy your coverage for this very long period as long as you diligently pay your premium. The coverage amount for this policy is capped at $150,000. If you need a higher coverage, you might have to find another option.
As the policy name suggests, this type of insurance includes a terminal illness coverage. Based on the terms of this policy, if you have a terminal illness that gives you no less than one year to live, you will be paid a lump sum that equals to 30% of the face amount. This rule applies to all states excluding Connecticut and Michigan where the percentage of payment is 25% of the coverage amount.
Take note that this policy is a coverage offered by employers to employees and their families. But in the event that your employment is terminated, there will be no effect to your coverage whatsoever as long as you’ve already paid your first monthly premium. In case you’re no longer connected with your previous employer, you can always keep the policy and just get billed directly.
If you bought the policy and you died, your beneficiaries can immediately get the emergency death benefit at least 24 hours after the company received the notice. This death benefit equals to lesser of 50% of the face amount.
In terms of the underwriting process, 5Star Life’s simplified issue is hassle-free. It requires no medical exam and the company would not even conduct a database check to determine your medical history. Except for a few a questions that you need to answer via a telephone call, you can get the application done right away.
If you’re a smoker, this is also a good policy to consider because it has no health risk classifications. If you’re found qualified, you can get an approval immediately. At most, the approval would take just a few days.
What’s Your Best Pick?
Although the three aforementioned insurance carriers are good choices if you’re a smoker and you’re looking for a no exam policy, it is safe to say that the Sagicor Life Insurance Company and the Savings Bank Life Insurance Company of Massachusetts provide the best terms. Among the many insurers, these two companies are the only ones that provide a preferred smoker rate and their coverage amount can be up to $500,000. The 5Star Life Insurance Company can be another option because it doesn’t have any type of health risk classifications, but it is only good if you’re looking for a life term with no more than $50,000 worth of coverage.
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