Term Life Insurance Demystified

Term life insurance can be a confusing topic and purchasing life insurance can be a daunting task, to some. With so many options out there, it may seem impossible to fully understand where to start. While some consider universal life insurance, many have turned to term life insurance. Either way, however, smoking can severely affect the amount that you pay. Term life insurance rates will affect people who smoke.

How smoking affects term life insurance rates

Something important to understand about term life insurance rates is that they're easily affected by multiple lifestyle habits that affect your health. One of the major things that life insurance companies look for is the health of the individual. Depending on your health, and the things you do that affect your body, your term life insurance rates may go up or down. Life insurance companies focus on health for good reason. They want their customers living long, prosperous lives. This benefits both parties. For the insured, the longer that you stay insured, the longer you can be protected by your policy. For the insurer, the longer the insured pays for insurance, the more money the company accumulates. With that being said, it becomes more obvious as to why health plays a part in term life insurance rates.

But how exactly does smoking affect term life insurance rates? It's common knowledge that smoking is bad for your health. The affect that smoking has on the individuals who smoke is impossible to ignore. There are many illnesses, many resulting in death, that are linked to smoking. The life expectancy of smokers is shorter than those who do not smoke. When life insurance companies identify that an applicant is a smoker, it automatically raises red flags. The person is considered to have a shorter life span, and is expected to possibly have health issues later in life. Because of this, term life insurance rates for that specific individual, are likely to be higher.

How can they tell if I smoke?

There are multiple ways that life insurance companies can tell if someone is a smoker. First, there is a questionnaire that is given to every individual looking into term life insurance rates. Some of these questions include smoking. Many see this and think that it would be easy to lie to the company, saying that you do not smoke. That is untrue. One of the other steps in the process of getting life insurance is to have a medical exam. The company is looking for specific things through this exam. Because there are chemicals left behind in your body by smoking (such as nicotine), the company can easily tell if you are a smoker. This is why it is important to understand that you should never lie on the questionnaire, under any circumstances. All of your life insurance (and policies) can be revoked if they find out you lied.

How can I lower my term life insurance rates?

While it is easier said than done, managing to quit smoking can lower your rates. If you are already locked into a life insurance policy, you are allowed to update your medical exam at any time. If you have quit smoking, updating this exam can be a way to show that you've quit. While quitting smoking can be difficult, managing to do so can help you out in lowering your term life insurance rates.