Smoking and nicotine use impact the rate class you’re offered when you apply for life insurance.
How Does Smoking Affect Life Insurance Rates?
A smoker who answers truthfully can get life insurance. Typically, however, they will be assigned a greater mortality risk and therefore pay more than the equivalent non-smoker.
There is not one percentage increase we can defensibly apply to smokers in Canada. It depends on the insurer, the product, the amount of coverage and their exact answers on the application. Their age, health, the specifics of what they are using and how recently will all affect the rate.
| Point in the policy | What smoking information can matter | Practical action |
|---|---|---|
| New application | The insurer can ask about all smoking, vaping, nicotine and cannabis use. | Respond to each part exactly as stated, including how often, in what form and the last time you used it. |
| Before delivery or effective date | A smoking-status change matters when the application or conditional receipt says it must be reported. | If any of your answers are no longer correct, contact the insurer or agent before accepting your policy. |
| Policy already in force | With respect to smoking, what matters is the truth of the evidence upon which reliance was placed to issue a contract. | If you start smoking after a fixed contract is in force, it does not normally get more expensive solely because smoking raises your health risk. |
| Contractual term renewal | The renewal schedule and rights stated in the policy | Have you verified if renewal is guaranteed? Does the premium rise on a schedule? Don’t just assume that there will be new underwriting. |
| Increase, addition, replacement or reinstatement | New evidence of insurability may be requested | Answer current-use questions again; treat the situation as a new underwriting event. |
| After quitting | The insurer’s non-smoker definition and reconsideration requirements | What form, medical evidence or test do you need? How long of an abstinence period might be needed? |
What If You Start Smoking After The Policy Is Issued?
You may be required to provide new underwriting evidence when applying for a policy, getting a conditional receipt, reinstating a policy, increasing coverage or making other changes in a policy. Always check with your insurer before making changes to find out what evidence will be required.
If you were truthful when you applied for your policy, a guaranteed premium generally continues according to the contract if you start smoking after the policy is issued. You should confirm the exact policy terms. Nor can it normally refuse a death claim merely because smoking later harmed your health. Scheduled premium increases for renewable term insurance result from the contract at renewal, not from your smoking. CLHIA consumer guides also point out that an insured should not have to accept surcharges or coverage limitations on a standard-rate policy just because he or she later becomes a substandard risk.
Who Is Considered A Smoker By An Insurance Company?
| Use | How to handle the application |
|---|---|
| Cigarettes, cigarillos, cigars or pipes | If a question on the application refers to social/infrequent use, you should include that on the application. |
| Chewing tobacco or other tobacco | Do not assume only smoked products count. Report it under the form’s tobacco wording. |
| Nicotine vaping | Report vaping and nicotine use separately if the application asks about each of these separately. |
| Nicotine gum, patches or other replacement products | State the product and purpose; insurer treatment can differ |
| Cannabis | Report the manner of use, frequency, whether it’s recreational or medical use and whether there is any tobacco/nicotine used with it. |
Canadian insurers don’t share a single definition. Don’t assume casual use means you’re not a smoker. Provide complete information: product, amount, frequency, last-use date.
Depending on the underwriting route and coverage amount, an insurer may use a questionnaire, interview, medical records, blood or urine testing, or other evidence to assess your risk level. Testing is not automatic, and inaccurate application information cannot be justified by a negative nicotine/biological test. Be completely honest.
How Do Tobacco, Nicotine And Cannabis Affect Underwriting?
| Issue | Tobacco or nicotine | Cannabis |
|---|---|---|
| Classification | Classification often depends on the product’s smoker or non-smoker definition. | Classification can depend on frequency, method, purpose and further health or lifestyle evidence. |
| Cutoff | Depending on the specific contract, a lookback period may apply to tobacco/nicotine usage. The timeframe and types of tobacco/nicotine products vary by contract. | Insurers don’t have a safe universal weekly-use cutoff for cannabis. |
| Rate effect | Smoker rates may apply even when an otherwise healthy applicant uses tobacco or nicotine. | Use of cannabis can still affect overall underwriting, although it may be possible to get non-smoker rates from some insurers. |
| What to disclose | Every form of tobacco or nicotine asked about | Disclose frequency, form, recency, purpose and any cannabis combined with tobacco or nicotine. |
Read More: Read About Canadian Smoking Trends and Life Insurance
What Happens If You Misrepresent Smoking On An Application?
MIB does not determine if an applicant told the truth. As CLHIA describes, it is a coded alert system that can lead a member insurer to request more information. An insurer should not decline solely because a code exists. The insurer needs more information before making a decision. You are entitled to a copy of your own MIB consumer file and may dispute the contents using MIB’s process for resolving inaccurate reports.
Under provincial insurance law, coverage can be voidable when a material fact was misstated or omitted. The Insurance Act in Ontario, for example, requires the applicant to disclose all material information in the application, medical exams, or other written proof of insurability. Unless there is fraud, Ontario’s Insurance Act generally makes a life contract incontestable after two years while the insured is alive. Different rules apply to a misstatement of age and to certain policy provisions. Rules differ by Canadian province and insurance contract. An incorrect response is not automatically considered fraud. Provincial law, timing, materiality, and intent may determine what happens as a result. We cannot promise outcomes in specific situations. If you discover an error, contact your insurer or licensed adviser right away to correct it, and make sure they confirm it in writing.
Read More: See How Life Insurance Underwriting Reviews an Application
How To Request Non-Smoker Reconsideration After Quitting
- Keep your existing policy in force. Don’t cancel it assuming a non-smoker classification or a lower rate is guaranteed.
- Get your insurer’s definition of non-smoker in writing, including:
- How long you have to go without smoking?
- What tobacco/nicotine products count?
Determine whether they can change only your current rate, or require a new application, replacement policy or other underwriting.
If a new application is necessary:
- Follow the instructions.
- Be honest, especially about smoking-related diagnoses and treatment if requested.
- Answer all questions completely and accurately.
- Follow instructions for medical screenings and tests.
Before accepting a new policy, compare it with your current contract, including benefits, premiums and guarantees. Consider:
- Conversion options
- Guarantees
- Term remaining
- Total cost
- Accepting a new policy can restart contractual periods. Price shouldn’t be your only consideration in accepting a new policy.
Read More: See How Health Records Can Support a Life Insurance Review