Insurance Machine

When you come to buy a life insurance policy, the life insurance companies will generally place you in a risk category to determine how much you should pay for your life insurance premium.

The categories are determined by your overall health and your lifestyle, including whether or not you smoke. Some companies use a “Super Preferred” or “Preferred Plus” class for the very healthy, and others have a “Substandard” or “Rated” class as well.

As an applicant for life insurance, you’ll be placed in a risk category, such as “Preferred” or “Standard,” along with a subcategory of “No Nicotine” that indicates whether or not you have smoked or use nicotine.

Rates for “Preferred, No Nicotine” will be lower than “Preferred, Nicotine” despite the current health of the applicant, because of the higher long-term risk of illness or death due to smoking-related diseases.

Are you considered a smoker? The questions about smoking and tobacco use are very specific when you apply for life insurance. A typical application will ask, “Have you used a tobacco product in the last twelve months?” You’ll need to explain whether you use cigarettes, cigars or even chewing tobacco. Most importantly, you must state how often you use each tobacco product.