One of the greatest misconceptions about vaping and life insurance is rate class. So much misinformation is all over the internet about whether a person can get non-smoker rates or if they’re stuck paying the smoker tax. Let’s talks facts.
The Truth About Vaping And Life Insurance
Let’s make this very clear from the beginning:
Regardless of nicotine use or not, you are eligible for non-smoker rates!
Nope, not a typo. So, what’s the catch?
You are only eligible for non-smoker rates if you haven’t touched a cigarette in the last 365 days–but you have to disclose your use of cigars or other forms up front.
Only one company offers it and the best rate class available is Non-Smoker Plus, the third best rating. Additional discounted premiums like Preferred or better are unavailable.
Why Just One Carrier?
Aside from this carrier, for every other carrier the jury is still out for lack of hard evidence on whether long term use of e-cigarettes causes the same decrease in life expectancy as other tobacco products. The reason life insurance for smokers is so much more is because this decrease in longevity is up to 10 years, a significant risk for life insurance companies.
In May of 2014, the Association of Home Office Underwriters (AHOU) held a 4-day conference where the issue was discussed. More than 150 underwriters, or the folks who approve or deny applications for insurance, gave their professional opinions on whether or not e-cigarettes should be classified as tobacco use. Most said yes.
But not everyone.
A release from Munich Reinsurers said not only did 26 percent of the attendees disagree with the classification, another 18 percent mentioned their companies hadn’t even installed underwriting guidelines for vapers because of the lack in information. This is great news for anyone who vapes because it shows serious consideration for this newer market segment.
Furthermore, not even the FDA has made a full determination on whether they think e-cigarettes or vaping is considered using tobacco. This is also great news for e-cigarette users because it’s obviously not a slam dunk case to call vaping tobacco use.
But the fact remains there is but one carrier making the non-smoking offer, and the top life insurance companies in the United States aren’t about to change without proper evidence. Most expect it could be as long as three years until the industry giants make any determination at all.
Sample Quotes On Life Insurance For E-Cigarette Users
Many consumers don’t realize how much you can save. When compared to the rates of smokers, it can be substantial. Let’s take a look at a sample case. We assume a 20 year level term policy for a healthy male at age 40 who has been vaping for at least 1 year.
Clearly, the annual savings are big.
However, what if this gentleman hadn’t been using the e-cigarette for a full year. Is he forced to pay the high premiums now or go uninsured? We have another way he can save.
Rather than pay the extraordinary smoker premiums, why not consider applying for an annual renewable term (ART), which is just a 1-year term, from someone other than this single company. After the year has passed, you can simply switch to these guys and apply at the vaping rates for life insurance. In this way, you’ve completely circumvented paying the smokers prices.
Here are some sample rates for the yearly renewable term:
Most carriers don’t offer a Preferred Tobacco health class for their ART products, but the savings is still very significant from their longer duration policies. Just remember, each year that passes, premiums rise due to age. You You will want to be positive you’ll be able to get approved at the life insurance rates for vapers after your one year is up.
Bonus Tips To Getting Top Rates
There are still a lot of assumptions in the sample quotes we provided. Among them, the rest of your health is in good order, you have a clean driving record, and your family history isn’t prohibitive of top rates. Any one of these, or a combination, could mean you’ll see worse than the Non-Smoker Plus rates, but you’ll still be free of the smoker premiums. Here are some other tips:
- Prepare ahead of time for your blood test, and take your physical seriously
- Admit to your examiner you use an e-cigarette before commencing the exam
- Do not lie, either directly or by omission
Although the third may seem obvious to some, not disclosing smoking habits truthfully could mean a non-payment of death benefit should the insurance company discover otherwise. This is insurance fraud, and lying about smoking to obtain non-smoker rates can be detrimental in your families greatest time of need.