How can smoking affect my life insurance premiums?

Being a smoker does impact the cost of your life insurance. Our comprehensive guide reveals the extra hurdles smokers may encounter when applying for life insurance or income protection insurance.

Can smokers get life insurance?

Yes, generally the same cover is available for smokers and non-smokers. The difference is usually in the price, in general smokers tend to pay more for cover.

How can smoking affect my life insurance premiums?

When assessing your life insurance application, the insurer may seek a range of information before making an offer of insurance. This includes:

• Your age

• How long you’ve been smoking

• How much you smoke and what you smoke

• Whether you have a history of asthma, breathing difficulties or chest and other medical conditions such as diabetes or high blood pressure

• Your occupation (for example, are you exposed to air-borne particles, dust, chemicals or irritants in your work)

• Your sporting activities and recreational pastimes.

Your premiums will be calculated based on the answers to the insurer’s questions, but generally smokers should expect to pay higher premiums than non-smokers since smoking may put you at greater risk of contracting a number of critical illnesses and medical conditions. For example, over one third of cardiovascular disease deaths in Australia for people aged under 65 can be directly attributed to smoking.

Do I need to tell my insurer if I smoke?

You must provide your smoking status to your insurer when you apply for insurance so they can consider the impact that this might have on your policy. Not disclosing accurate information to your insurer when you apply for insurance can have serious impacts on any claim you make. For instance, the insurer could reduce the sum insured payable, based on the smoker premium rates that should have been charged.

What if I'm an occasional smoker?

You need to tell your insurance provider even if you are only an occasional or social smoker as it may affect your policy. Different insurers classify smokers differently, so always check with the insurer for full details.

What if I use e-cigarettes or vape?

Vaping is generally considered by insurers the same as smoking, so higher premium rates are likely to be charged. You should check with your insurer for their approach.

What if I stop smoking after getting life insurance?

If you haven’t smoked in more than a year, get in touch with your insurer to let them know. You may be eligible for a reduction in your premiums. Many insurers will still classify individuals undergoing nicotine replacement therapy as a ‘smoker’ so consider this as you look to quit and contact your insurer for their approach.

At what point are people considered non-smokers?

If you apply for a TAL Product, past-smokers need to have not smoked at all in the 12 months prior to applying for life insurance or income protection insurance to qualify for non-smoker premium rates. This includes the use of e-cigarettes and any nicotine-replacement therapy such as lozenges or patches.

Your overall state of health and medical history will also be taken into account. If you have quit due to a change in your health, it is unlikely that you will be eligible for any reduction in premiums.

Quitting smoking can be tough. If you would like help or support in your quitting journey, try calling the Quitline hotline at 13 78 48.

If you would like to establish whether TAL insurance is right for you, use TAL Coverbuilder to put together a policy that suits your situation.

Any financial product advice is general in nature only and does not take into account any person’s objectives, financial situation or needs. Before acting on it, the appropriateness of the advice for any person should be considered, having regard to those factors. Persons deciding whether to acquire or continue to hold life insurance issued by TAL should consider the relevant Product Disclosure Statement (PDS). The Target Market Determination (TMD) for the product (where applicable) is also available. Life insurance issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848.