Will Smoking, Vaping, Or Cannabis Use Raise My Rates?

We all know that rates are generally higher for people who smoke, vape or use cannabis. The real question is how much higher is the rate and what is considered "usage". Of course, each company has its own underwriting guidelines, but for this article, let's just consider a general overview.

Insurance carriers use statistical data to view these habits through the lens of mortality risk, and the difference in premiums between a "Smoker" and a "Non-Smoker" rate class can be substantial—often doubling or tripling your monthly costs.

1. Traditional Smoking (Cigarettes)

This is a straightforward baseline. Smoking traditional cigarettes will automatically place you in a "Tobacco/Smoker" rate class.

• The Cost: Expect to pay 200% to 300% more than a non-smoker of the same age and health profile.

• Getting Non-Smoker Rates: Most carriers require you to be completely nicotine- and tobacco-free for at least 12 months to qualify for standard non-smoker rates, and up to 3 to 5 years to qualify for "Preferred Plus" tiers.

One thing that comes up here is occasional usage. Some people will only smoke a cigarette two or three times a month, usually in a social situation. Some folks will enjoy a cigar once or twice a month. These people assume that they aren't tobacco users, but the company might not agree. 

2. Vaping and E-Cigarettes

Even though vaping doesn't involve burning tobacco leaf, the vast majority of life insurance companies treat vaping exactly like cigarette smoking.

• Nicotine Factor: If your vape liquid contains nicotine, a routine medical exam will detect cotinine (a byproduct of nicotine) in your system, triggering tobacco rates.

• Nicotine-Free Vaping: Even if you vape nicotine-free liquids, many carriers will still classify you as a smoker because it's difficult to prove the absence of nicotine historically, and the long-term health data on vaping is still being evaluated. A select few carriers may offer non-tobacco rates if you can prove a clean lab panel, but they are the exception. 

  

3. Cannabis Use

The insurance industry’s view on marijuana has softened significantly over the last several years, but underwriting still varies wildly from company to company.

• Frequency Matters: Occasional recreational users (e.g., once a week or a few times a month) can frequently qualify for Standard Non-Smoker or even Preferred rates with specific carriers, provided there are no other health or lifestyle risks. Heavy or daily use will usually push you into a smoker tier or a rated (higher cost) category.

• Method of Consumption: Edibles and oils are sometimes viewed more favorably than smoking or vaping cannabis, as they don't carry the respiratory risks associated with inhalation.

• Medicinal vs. Recreational: If you have a medical marijuana card, underwriters will look closely at the underlying health condition you are treating rather than just the cannabis use itself. Some people feel that if they state that they use cannabis for medical purposes, that it somehow makes it more "legitimate", but it can often make the price higher or even result in a "decline". This is because the carrier will want to know what illness is being treated with the marijuana, which can open a whole new can of worms.

The good news is that many insurance companies will offer a "reconsideration" clause. For example, if you quit smoking and are nicotine free for 12-24 months (depending on the carrier), they will adjust your rates downward. 

Each insurance company has their own guidelines. Some are more "lenient" than others, either not considering an occasional cigar an issue or have lower "smoker rates". This is where using an independent insurance broker shop your case around can be better than using an agent who only has one carrier at their disposal.

If you need life insurance to protect your family but are concerned about how much it will cost due to smoking, vaping or cannabis usage, give our life insurance quoting tool a try. And if you have questions, please reach out to us.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!