Depending on the insurance company, you may spend as much as $100 more each month in order to carry a plan. Of course, other factors come into play, such as the type of policy you are applying for, your age when applying, and the amount of coverage you wish to have. Nonetheless, you can expect to pay a significantly larger amount for your insurance if you are a smoker.
Are These Increased Rates Fair?
Certainly, an increase in insurance rates for a smoker as compared to a non-smoker does not seem fair to most smokers. After all, it may seem almost like a punishment for smoking. Nonetheless, insurance companies are within their legal rights to charge more for a smoker than for a non-smoker.
Life insurance companies have long charged higher rates for people they consider to be in high-risk categories. People suffering from diseases such as bronchitis, emphysema, cancer, and even allergies have experienced rate increases for a number of years. At one time, smokers did not get hit with higher rates because the full effects of smoking were not understood. Now that they are better understood, insurance companies have had to adjust their premiums accordingly.
By having high risk customers pay a higher premium, the insurance companies are able to keep their rates lower for those that are not in the high risk categories. In essence, increasing the premiums on smokers helps to prevent punishing other customers by forcing them to pay higher rates.
Are There Any Alternatives Available For Me If I Am a Smoker?
If you are a smoker, you can still enjoy purchasing insurance coverage for a reasonable rate by working with the right company. Some companies specialize in people that fall into high risk categories, such as smokers. These companies will often look more thoroughly into the applicant’s health rather than group all smokers into one category. These are the types of companies you should look at working with in order to get the best rates possible.