Recent research suggests that smoking impacts morbidity (health complications and quality of life) more than mortality (lifespan). This shift in understanding explains why many insurance products now offer similar premiums for both smokers and non-smokers.
Traditionally, life insurance premiums were higher for smokers due to the assumption of reduced life expectancy. However, if smoking primarily affects health rather than longevity, insurers may now focus more on health-related costs rather than death risk.
Why Are Smoker and Non-Smoker Premiums the Same?
Insurance companies have recognized an interesting pattern:
✅Only 20% of smokers continue smoking after 12 months of taking a policy.
✅ 20% of non-smokers start smoking after getting insured.
Because the probability of being a smoker or non-smoker remains nearly the same over time, insurers have adjusted their models, often setting a 12-month waiting period for smokers instead of charging significantly different premiums.
What This Means for Policyholders
- Standardized life insurance premiums regardless of smoking status.
- Higher health insurance costs for smokers due to increased medical needs.
- More focus on critical illness and disability coverage, as smoking-related conditions impact long-term health rather than immediate mortality.
As the insurance industry adapts to evolving research, it’s essential to rethink how we assess risk and plan for the future. What are your thoughts on this shift?
