Non-smokers save on insurance

Smokers can save a lot of money by quitting smoking. This not only applies to the money they spend on cigarettes and rolling tobacco, but they can also save money on certain insurance policies. Smoking is bad for your health and your wallet. Even at work, smokers increasingly encounter misunderstandings. They have to leave their workplace an average of three to six times a day to smoke a cigarette. It won’t be the biggest incentive, but by quitting smoking they can also save money on certain insurance policies. You could say that smokers are sick more often, which means they have to submit a claim on their health insurance more often. Most costs are paid by the health insurer, but the deductible must be borne by the insured person himself. A distinction can be made between smokers and non-smokers regarding the risk of death. Smokers will have to pay a higher premium.

Why do smokers have to pay a higher premium?

Statistically, smokers have a shorter life expectancy. From the insurer’s perspective, there is therefore a greater chance that the insured person will die during the term of the insurance. In that case, the insurer must pay out the insured amount. Not all insurers charge different rates for smokers and non-smokers.


Suppose the insurance runs for twenty years. The insured is now thirty years old. The chance that the insured person will reach the age of fifty is greater for an insured person who does not smoke. The insurer attaches great importance to this, because after the policy has run for twenty years, the insurance expires without any payment being made.

Does funeral insurance also have a higher premium?

No, the interests for the funeral insurer are also much smaller. With this form of life insurance, the insurer also benefits from the insured person living as old as possible, because then the benefit is also postponed to the future. The difference with term life insurance is due to the fact that funeral insurance is guaranteed to pay out. With this form of insurance, an agreement is only made with the insurer about the duration of the premium payment. The insurance continues for life. However, with this form of insurance, the insurer also has an interest in living as long as possible. They can postpone the payment for longer and therefore keep the money under management for longer. In addition, there is a chance that an insured person who dies earlier also has paid premiums for a shorter period of time. This is not always the case, because with funeral insurance it is also possible to keep the premium payment period short.

Are smokers disadvantaged in this way because they smoke?

Insurers try to get policyholders on the books to whom they have to pay out as little money as possible. This applies not only to life insurance, but also to car insurance and home insurance, for example. By charging a higher premium to those insured for whom they are more at risk, they can attract those insured who pose a lower risk with a lower premium. Smokers are therefore disadvantaged, but the premium also depends on many other factors.

Can smokers also benefit from a better deal than non-smokers?

There are also life insurance policies that only pay out the insured amount if the insured person is still alive on the maturity date. For example, a thirty-year-old takes out an insurance policy that pays out 50,000 if the insured is still alive when he turns fifty. With this form of insurance, smokers do not receive a lower premium, which is actually strange.