Life insurance for Cigar Smokers 

Getting affordable insurance is possible if you are a cigar smoker.

However, your smoking frequency and history, along with other personal factors, such as age, gender, and overall health, will largely determine your premium rate. Let's dive into the details.

Key takeaways:

• Insurance for cigar smokers can start at just a few dollars a month
• Insurance companies usually treat cigar smokers more leniently than people who smoke cigarette
• The frequency of cigar use will impact your monthly premium costs
• Shopping around is the best way to save money on insurance

Understanding Cigar Smoking and Life Insurance

Cigarette smoking can have a significant impact on life insurance premiums, but it’s essential to understand the nuances of how a life insurance company views cigar smokers. While cigar smoking is not as risky as cigarette smoking, it still poses health risks that can affect life insurance rates. Life insurance company recognizes that cigar smokers generally inhale less smoke than people who smoke cigarettes, which can result in a lower risk profile. However, the presence of nicotine and other harmful substances in cigars still raises concerns.

Most life insurance companies categorize applicants based on their smoking habits. If you smoke cigars occasionally, you might be eligible for non-smoker rates, especially if you test negative for nicotine during the medical exam. On the other hand, regular cigar smokers are often classified similarly to cigarette smokers, leading to higher premiums. Understanding these distinctions can help you navigate the insurance landscape more effectively and find a policy that suits your needs.

How Cigar Smoking Affects Your Life Insurance Rates

All life insurance companies have non-smoker rates and smoker rates. Smoker rates can be two to three times higher than the non-smoker rates. This is because smoking is linked to many severe illnesses and a reduced life expectancy.

If you smoke cigars, the insurance company will label you as a tobacco user — there are no two ways about it. But that in and of itself doesn’t automatically disqualify you from being approved with non-smoker rates. You may even qualify for the lowest non-smoker rates offered by insurers to someone of your age and gender, depending on how frequently you smoke cigars and your overall health profile.

An insurance company views people who smoke cigars differently than those who smoke cigarettes. Tobacco users, including cigarette smokers, can qualify for non-smoker rates if they meet specific criteria — but not people who smoke cigarettes.

How cigar smoking will impact your premium depends on the following:

• How frequently do you smoke cigars
• Whether you also smoke cigarettes or e-cigarettes or not

Life insurance companies classify cigar smokers into occasional, moderate, and regular.

While each insurer follows its underwriting guidelines, most define an occasional cigar as someone who smokes up to 12 cigars a year. Those who smoke more than 12 cigars a year but fewer than 52 are labeled as moderate cigar smokers. Smoking more than 52 cigars yearly will lead to a regular cigar smoker classification.

Typically, occasional cigar smokers have no difficulty securing non-smoker rates. They may even be offered the lowest non-smoker rates provided:

• They test negative for nicotine on the life insurance medical exam
• They do not smoke any cigarette or e-cig
• They have a healthy BMI and no serious pre-existing illness

When it comes to moderate cigar smokers, insurers are less accommodating. Most providers will approve you with smoker rates, though a few might be willing to classify you as a non-smoker.

Chances of receiving non-smoker rates as a regular or heavy cigar smoker are slim. Nonetheless, you can still find an affordable life insurance policy if you are in great physical shape and have no underlying health condition.

Regardless of your cigar smoking habits, you must be honest on your life insurance application. Withholding key information or lying on your application is insurance fraud and can have severe consequences for you and your beneficiary.

The insurer may turn down your application, and you may even need help securing coverage with other providers. If you are approved and the insurer finds out the truth later, it may increase your premium rate, cancel your policy, or worse, decline the claim filed by your beneficiary.

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Insurance underwriting for cigar smokers

Underwriting is a process followed by insurance providers to assess the level of risk you pose to them and determine your premium rate. Underwriting for cigar smokers is no different than underwriting for non-smokers. Just like others, you will have to:

• Take a medical exam 
• Answer a few questions regarding your current health and lifestyle habits 
• Disclose your personal medical history and family medical history 

Depending on your cigar smoking habits, the insurer will first decide whether to offer you a non-smoker rate or a smoker rate. Then, it will consider other factors (like your overall health and medical history) to determine your health classification.

Non-smoker Health Ratings

There are four main health classes: preferred plus, Preferred, Standard, and Sub-standard (or Table rating). Table rating has different levels, typically 1 to 10 or A to J.  

The health classification you receive ultimately determines how much you’ll pay for coverage. 

The Preferred Plus rating has the lowest premiums, while the Preferred rating has the second-lowest premiums. A Standard health classification means your risk level is the same as that of the average person of your age and gender. It has the third-lowest premiums. 

A table rating is assigned to people with riskier lifestyle habits, complex health issues, and medical histories. With a Table A rating, you pay the insurer’s Standard rate plus 25%. You go down the table rating for each level, and another 25% is added to the standard rate. 

Smoker Ratings

Most insurers offer three health classifications for people classified as a smoker: Preferred Smoker, Standard Smoker, and Smoker Table ratings. The premium rates for these ratings are two to three times higher than their non-smoker equivalents, on average. 

The criteria used for smoker classifications is no different than the one used for non-smoker classification. However, insurers also consider the frequency of your cigar smoking. 

Because the attitude towards cigar smoking varies significantly between life insurance companies, it’s wise to get quotes from as many providers as possible. Alternatively, you can consider working with an independent insurance broker. They can submit your application to providers with a history of underwriting cigar smokers more favorably than others.

What are the other factors that affect your insurance rates? 

Besides cigar smoking, insurance carriers consider several factors to assess your risk profile. 

• Age: Insurance premiums increase, so buying coverage early in life can save you hundreds of dollars on premium rates in the long run. 
• Health: Insurance carriers reserve their best rates for healthy applicants. On the other hand, pre-existing illnesses, mainly if they are not well managed, could bump up your premium rate. 
• Family medical history: Some medical conditions, like heart or circulatory disease, run in families. This is why life insurers look at your family history into account when they determine your premium cost. If someone in your immediate family has died due to heart disease or cancer, you may have to pay a higher premium. 
• Lifestyle factors: A significantly higher-than-average BMI, heavy alcohol consumption, or risky hobbies, like bungee jumping, could all raise your premium rate. 

Insurance Options for Cigar Smokers

Smoking cigars won’t limit your insurance options, though it may lead to higher premiums. Three of the most common types of insurance plans are term insurance, whole insurance, and universal insurance. Which one of them is best for you depends on your unique situation. 

Term life insurance

Term life insurance covers you for a set period, referred to as the ‘policy term.’ The most common policy terms are 10, 20, and 30 years. However, you can buy a policy with a longer term than 30 years or a shorter term than 10 years. Your policy will pay your beneficiary a tax-free, lump-sum amount if you pass away during the policy term, provided you don’t default on your premiums. 

Coverage ends automatically when the life insurance policy expires unless you renew it or convert it to a permanent insurance plan.  

It is more straightforward than whole life and universal life insurance. It is also significantly cheaper. 

You may want to consider it if you strongly: 

• You want to create a financial safety net for your family for a limited period (e.g. until your children start earning or you become financially independent)
• You want to cover one or more financial obligations that have fixed repayment schedules (like a mortgage or student loan)
• You are looking for an affordable way to secure your family’s financial future  

Whole Life Insurance

Whole life insurance covers you for as long as you live. It also includes an investment component, called cash value, that grows tax-deferred and can be used to meet a financial emergency, fund a big purchase, or supplement your retirement income. 

Whole life insurance is pricey. On average, it is up to 10 times more expensive than term life. 

Despite the high price tag, whole life could be a good fit if:

•  You want to ensure your family receives financial help when you pass away, no matter when that happens
• You are a high-net-worth individual and want to diversify your investment portfolio

Universal Life Insurance

Universal life is a close cousin of whole life insurance. Just like whole life, universal life plans combine permanent life insurance cover with the cash value feature. However, it may offer adjustable premiums and an adjustable death benefit and can help you potentially accumulate cash value faster. 

Universal life insurance is a good option if: 

• Your annual income is not fixed
• You want the freedom to change your policy as your circumstances change.
• You want a policy that offers the potential to earn higher returns than whole life insurance.

Family Insurance Policies for Cigar Smokers

As a cigar smoker, you may be concerned about how your habit will affect your family’s life insurance policy. The good news is that many life insurance companies offer family policies that can accommodate cigar smokers. These policies can cover your spouse and children, ensuring they’re protected during your passing. When shopping for a family life insurance policy, be sure to disclose your cigar smoking habits to ensure you’re getting the best rates.

Family life insurance policies are designed to offer comprehensive coverage, considering each family member's unique needs. By being upfront about your cigar smoking, you can avoid potential issues down the line, such as policy cancellations or claim denials. Additionally, some insurers may offer tailored policies that consider occasional cigar smoking, allowing you to secure non-smoker rates for your family. Transparency and thorough research are key to finding a policy that safeguards your loved ones without breaking the bank.

How to get the best life insurance for cigar smokers? 

Getting the right insurance coverage is necessary, but so is getting the best rate. Finding a policy that meets your financial needs and fits into your budget doesn’t have to be complicated or time-consuming. 

Here are some critical steps to get the best coverage at a great price. 

Assess your insurance needs

Why do you need insurance? Are you the household's primary breadwinner and want to set up a financial safety net until your kids grow up and start earning? Or do you need insurance to cover your mortgage? You may have a dependent who would stay financially reliant on you for many years, possibly for your entire life.

Everyone’s situation is different, so no one-size-fits-all life insurance coverage exists. Assessing your needs will help you determine the type of life insurance that is right for you. 

Generally speaking, term life insurance is a good fit for most people. It’s affordable and covers you when you have the biggest financial responsibilities. 

That said, whole life insurance could be suitable in some situations. For example, if you have a special-needs child at home, want to use life insurance for estate planning, or need a policy that would double up as a cash asset, whole life insurance could be a good choice. 

How much coverage do you need?

The coverage amount should be large enough to cover your financial obligations but not excessively large. There’s no need for a bigger payout if your loved ones can comfortably get by with less. 

Consider your monthly income if you’re unsure how much coverage your family will need. This indicates how much your dependents will need when you cannot provide for them. 

Shop around

As with any type of insurance, you are paying for peace of mind, and when it comes to insurance, that often comes cheap, even for cigar smokers. For example, term life insurance for occasional cigar smokers can start at just a few dollars a month. 

One thing to keep in mind is that some providers will likely offer you a better deal than others. Therefore, it pays to compare quotes before signing up for a policy. 

Quitting Cigars and Tobacco for Better Health and Life Insurance Rates

Quitting cigars and tobacco can have numerous health benefits, including reducing your risk of heart disease, lung cancer, and other smoking-related illnesses. Additionally, quitting can also lead to lower life insurance premiums. Life insurance companies reward healthier lifestyles with better rates, and quitting smoking is a significant step towards improving your overall health profile.

If you’re considering quitting, it’s important to know that most life insurers require you to be tobacco-free for at least one year before you can qualify for non-smoker rates. This period allows your body to recover from the effects of nicotine and demonstrates your commitment to a healthier lifestyle. To help you quit, consider seeking support from smoking cessation programs, using nicotine replacement therapies, or consulting with a healthcare professional.

Some insurance companies like Foresters will offer you non-smoker rates if you commit to quitting smoking. By quitting cigars and tobacco, you can enhance your health and potentially save money on your  premiums. The journey to quitting may be challenging, but the long-term benefits for your health and financial well-being make it worthwhile.

What happens if I start smoking cigars after getting life insurance?

Insurance providers assess your risk at the time of application. In case you start smoking cigars after buying a policy, your premium will not change. You would not need to inform the insurer about this change. 

Conclusion

Life insurance for cigar smokers is not necessarily expensive. For instance, occasional cigar smokers can easily qualify for non-smoker rates. Affordable options are available even for moderate and heavy cigar smokers, as often insurance companies don’t categorize  cigar smokers together. 

If you’re worried that cigar smoking will increase your premium costs significantly or are not sure about which type of life insurance or how much coverage you need, Dundas Life can help you. We’ll provide unbiased advice and no-obligation, free price quotes from multiple providers, some of whom will likely offer you better rates than others. Reach out to us today.

FAQs

Are cigar smokers considered smokers by life insurance companies? 

The short answer is it depends. The long answer is if you smoke 12 cigars a year or fewer than that, most insurers will approve you with non-smoker rates. Moderate smokers (more than 12 cigars a year but fewer than 52) are usually labeled as smokers. Regular cigar smokers (more than 52 cigars yearly) always receive smoker rates. 

Will quitting cigars lower my life insurance rates? 

As a regular cigar smoker, you have to quit smoking for at least one year to qualify for non-smoker rates. Non-smoker rates are up to three times lower than smoker rates. 

Can life insurance companies deny coverage to cigar smokers?

It is rare for an insurance company to deny someone coverage due to their cigar-smoking habits alone. However, heavy tobacco use combined with other health issues could lead to denial of coverage. Keep in mind different insurers underwrite differently. Even if your first application was denied, there’s always a chance that another provider may extend you coverage. Therefore, don’t automatically assume you cannot get traditional life insurance coverage. You may also want to consider talking to an independent insurance advisor. A licensed life insurance agent may have more success than you if you apply on your own. 

Can you get non-smoker rates if you smoke cigars? 

Yes, you can. If you are an occasional cigar smoker (not more than 12 cigars a year), you can get non-smoker rates as long as your life insurance medical exam results don’t show traces of nicotine in your blood or urine.