Alternatives to smoking tobacco have risen to greater prominence over the past decade, and among them is the increasingly popular electronic cigarette. Even most non-smokers these days are aware of this “E-cigarette” (Electronic Cigarette). Even though these cigarettes only simulate actual smoking tobacco through their own vapor-making devices and many do not actually release any nicotine, it is the unfortunate truth that many life insurance companies do not distinguish between e-cigarettes and regular cigarettes.
Because of this, just about every life insurance company out there will give you smoker rates. Because these rates are much more expensive than non-smoker rates, it is important to know your options.
Currently, Prudential is the only life insurance company that will not automatically give you smoker rates. If you have used e-cigarettes in lieu of regular cigarettes for at least 12 months, Prudential will consider offering you Regular Non-smoker (Non-Tobacco) rates, also sometimes known as Standard Non-smoker rates.
Regardless of how regular Prudential premiums compare to other companies, smoker rates are always significantly higher than non-smoker rates. Let’s look at an example.
Let’s say Janet is a 35-year-old woman who has been using e-cigarettes for three years now. When she applies for a $250,000 term life insurance policy for a period of 20 years, she is likely to be offered the following from some of the top companies:
Transamerica: $42 a month
Banner Life: $43 a month
Genworth: $43 a month
SBLI: $44 a month
ING: $44 a month
MetLife: $46 a month
Nationwide: $47 a month
Now, those rates were at Preferred Tobacco, which are the best rates companies offer smokers. However, Prudential understands that the e-cigarette is not like regular cigarettes, and therefore they are likely to offer Janet the following, providing she has not used “regular” cigarettes in the past year:
Prudential: $25 a month
This rate is at Regular Plus Non-tobacco, but it is still about half the cost of Preferred Tobacco rates. The decision to go with Prudential if you use e-cigarettes is really a no-brainer.
It’s important that you realize that every applicant is different, and every person is going to get different insurance rates depending on their health, family history, any pre-existing conditions. The numbers above are rough quotes. Even someone that is the same age and gender could get drastically varying rates depending on their health or the company that they contact.
One of the most important things that you should do before you purchase a life insurance plan is to calculate how much protection that your family will need if something were to happen to you. Not having enough life insurance is one of the worst mistakes that you could ever make for your loved ones.
The first thing that you should look at is your debts and other final expenses. The primary goal of your life insurance plan is to give your family the money that they need to pay off any bills and other debts that they would be responsible for. Make sure that your plan is large enough to cover the expenses that they would have to pay off.
The next number that you should look at is your annual income. The second goal of your life insurance is to ensure that your family has the money that they need to pay for any basic expenses if they no longer have your paycheck coming in every month. If you’re the main income earner in your home, make sure that they will be able to pay for all of the monthly bills if something were to happen to you.
You should also consider your burial expenses and funeral fees. The average funeral can cost around $10,000, which can be difficult for a grieving family to cover. That’s where your life insurance policy comes in. Make sure that your loved ones won’t have to drain their bank account to afford your funeral.
One of the most common reason that people don’t buy life insurance, especially e-cig users, is because they assume that a policy is going to be too expensive. In most cases, that couldn’t be further from the truth. There are several ways that you can ensure that you’re getting the lowest rates possible. Making a few simple changes can save you thousands of dollars every year.
One thing that you should do is improve your overall health. If you’re in less than perfect health, then you should spend some time improving your overall health before you apply for insurance protection. Before the insurance company approves your application, they are going to require that you take a medical exam (unless you buy a no exam plan), and the results of the exam are going to play an important role in how much you pay every month for your insurance policy. If you want to save money, it’s time to start hitting the gym. Losing weight can lower your insurance premiums by as much as 50%.
The best way to ensure that you’re getting the lowest rates is to compare dozens of plans before you decide which one is best for you. Every insurance company is different and all of them are going to offer you different rates depending on the company that you contact. Finding the perfect company is the difference in getting an affordable policy or one that’s going to break your bank every month.
There are hundreds of companies on the market, which means that you could spend days calling different companies and getting quotes. Instead of wasting your precious time, let one of our independent insurance agents do all of that hard work for you. Unlike traditional insurance agents, our brokers work with dozens and dozens of highly rated companies across the nation across the country. We can bring a personalized set of quotes directly to you.
If you have any questions about electronic cigarettes and life insurance, please contact one of our agents today. We would love to answer those questions and ensure that you’re getting the best plan available to you.
We’re ready to discuss your options with you and help get you started right away with an application for coverage from Prudential. You can also get quotes using our form.