As independent life insurance agents there is a kind of longing for the good old days when US Financial offered non smoking rates to social smokers and when CNA would issue a policy to a smoker at non smoking rates, with the caveat that they had to quit smoking within four years.
Those two deals are nearing ancient history now and except for the companies that will allow tobacco use other than cigarettes at non smoking rates, well, it’s no fun being a smoker and paying smoker life insurance rates. With the exception of a few companies that have separated themselves from the pack over the years, cigarette smoker life insurance rates run anywhere from 2 to 4 times as much as a non smoker in the same health.
Is it fair? Well, actually it is. The CDC starts out it’s explanation of smoking and health risks by saying, “Smoking harms nearly every organ of the body. Smoking causes many diseases and reduces the health of smokers in general.”
OK, I know you didn’t come here for a lecture. You want the best rate for life insurance you can possibly get given the fact that you smoke. And unlike, Selectquote, Accuquote, or Zander Insurance, I can get it for you and they can’t on all term lengths. Using my nearest age 58 and being in great health I ran rates for $500,000 of 20 year, 15 year and 10 year term as a cigarette smoker.
All three of the above quoted Banner Life for the 10 year at $4220 a year and American General as the best 20 year at $7554 a year. The 15 year term was interesting with Zander quoting North American at $5765 and Selectquote and Accuquote sticking with American General at $6069 annually.
Bottom line. I think Banner is a good buy at $4220, but for 15 years Met Life is at $5439, $300 and $600 below the competition respectively and on a 20 year Met Life once again is $300 a year below the competition. Is it huge savings? No. Huge savings went away with Liberty Life, but the thing is big agencies are steering away from quoting the lowest prices in all scenarios.