Underwriting Exceptions for Tobacco Users

Identifying non-tobacco pricing solutions for tobacco user is key: it cuts premiums in half for the most popular forms of life insurance.   Several highly rated life insurers currently offer non-tobacco pricing exceptions for:

• Daily cigar smokers
• Dippers, chewers
• Some vapers
• Occasional cigarette smokers
• Former daily cigarette smokers who quit smoking 12 months ago (or earlier)

Unfortunately, there is no one life insurer that offers non-tobacco rates to all of them.  Underwriting varies by type & frequency of tobacco used, past tobacco use, and whether nicotine (cotinine) was detected on insurance company labs.  To match an applicant with our industry’s top solution(s), please provide us with answers to the questions further down on this page.  The effort is worth it as the following recent examples illustrate:

Kayla, F, 26, attorney, vapes daily, $3M 20-year level term for income replacement purposes:

• Tobacco premiums = $3,024.70
• Non-tobacco premiums = $1,535.01
• Annual savings for non-tobacco premium: $1,489.69 = 49% Discount
• Total Savings over 20 years: $29,798.80

Hunter, M, 37, baseball player, likes to chew tobacco daily, needs $5M 30-year level term to cover a new mortgage:

• Tobacco premiums = $18,682
• Non-tobacco premiums = $8,169.70
• Annual savings for non-tobacco premium: $10,512.30 = 56% Discount
• Total Savings over 30 years: $315,369

Kaitlyn, F, 56, actress, occasionally smokes cigarettes while attending social events, needs $2M of guaranteed level premium permanent insurance to leave a $1M legacy for each of her two adult children:

• Tobacco premiums = $46,910
• Non-tobacco premiums = $24,263
• Annual savings for non-tobacco premium: $22,647 = 48% Discount
• Total Savings to approximate life expectancy (30 years): $679,410

Robert, M, 61, business owner, enjoys cigars on the golf course several times per week; Jackie, F, 55, homemaker, does not use any form of tobacco, super healthy.  They need to add $10M survivorship life coverage to their ILIT to cover anticipated death taxes upon the second death:

• Premiums with Robert qualifying for tobacco rates = $160,236
• Premiums with Robert qualifying for non-tobacco rates = $102,822
• Annual savings based on non-tobacco premiums for Robert: $57,414 = 36% Discount
• Total savings to approximate life expectancy (35 years): $2,009,490

Pre-Underwriting Questions for Current & Past Tobacco Users

Please send click the button above to submit a quote request and we’ll provide you with our industry’s best-fit solution(s).  If you prefer to discuss a case, call your CPS Advantage representative, a Team Member, or connect with us via email to requests@cpsadvantage.com.  We look forward to finding a winning solution for you!