How does a life insurance company know if you smoke?

Many of us have smoked at some point in our lives, whether it's the occasional cigarette during social gatherings or a regular habit. Even as a smoker, it's still possible to get a life insurance policy. However, it can significantly impact the cost of your monthly premiums. But how can insurers know about your smoking habits unless you tell them?

How does smoking impact life insurance?

By now, it's common knowledge that smoking is damaging for your health. As studies have shown, it has a direct impact on life expectancy and increases the risk of health issues, such as lung cancer, heart disease and strokes. So naturally, it comes as no surprise that being a smoker can impact buying life insurance cover.

For starters, you are likely to pay higher premiums as a smoker compared to non-smokers because of the health risks involved. Your premium is the amount of money you pay either monthly or annually to your insurer to keep the policy active. The cost could also be influenced by how much you smoke and how often.

Note: You’ll likely be classed as a smoker if you’ve used tobacco or nicotine products in the last 12 months. This includes cigarettes, cigars, pipes, e-cigarettes, vapes, and other smokeless tobacco products.

It could also make it harder to get covered, as some providers may refuse to sell a policy to smokers, or even offer limited cover options. You could also have difficulty finding cover due to complications developed through smoking, such as COPD.

While your premiums could be high to start with, you may be able to lower them if you quit smoking and stay free of nicotine products for at least 12 months.

If you're a smoker considering buying life insurance, have a look at our guide: Life insurance for smokers - everything you need to know.

Can insurers tell if you smoke?

Even if you're an occasional smoker, insurers have ways of discovering your smoking habits. When you apply for life insurance, you will typically be asked about your tobacco and nicotine use. While it's tempting to lie about your smoker status on your life insurance application, insurers have ways to verify this information.

Once your application is made, your insurer could ask for your medical information, including your medical history and any recent medical exams. 

What happens if you lie to your insurer about smoking?

If you are found to have lied or withheld information about your smoking habits, your insurer could limit the amount of money paid out from the policy or deny a claim altogether.

To avoid such instances, it's best to be open and honest about the information you provide to your insurer. Even if it could impact the cost of your premium, it's surely better than your family/loved ones being denied a claim.

What if you start smoking after getting life insurance?

Life insurance is underwritten at the point of application, so if you start smoking after a policy has been taken out, your insurer cannot raise your premium. Be sure to check the terms and conditions of your policy or speak to your insurer directly for clarification.

It can also depend on the type of policy you have. If you have whole life insurance, the policy remains active as long as you continue to pay your premium. Whereas term life insurance provides cover for a set amount of years (anywhere between 5–50 years).

Say you outlive the policy and your cover expires, then you may wish to take out further cover. If you've recently started smoking by this time, it could impact your ability to get a new policy or the cost of premiums may be higher as a result.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have a scheme that allows you to keep the cover.