It’s common knowledge that smoking is bad for your health. It’s also bad for your life insurance premiums. If you smoke, you can expect to pay more for your cover.
Even if you don’t smoke regularly, and just consider yourself a social smoker, you could still be hit with higher premiums depending on how your insurance provider assesses your application.
Some providers will simply ask how many cigarettes you’ve had in the past 12 months – anything more than zero could have a direct impact on your premiums so it’s important to be as honest as possible from the start. That means you may need to be clear and dry from all smoking activities for at least a year if you want a lower premium.
The good news is that even if you get classified as a smoker when you sign up, you can usually have your premiums re-assessed if you end up quitting later on.
Level of cover
If you want a policy with all the latest bells and whistles, you can expect to pay more than you would for a basic policy. Some Life Insurance policies come with the option of applying for extra cover for things like Serious Illnesses or Total & Permanent Disability. If you choose to upsize to these benefits, your premiums will increase.
Your premiums will also be affected by your benefit amount. The higher your benefit, the higher your premiums will be. While it might sound tempting to lower your benefit to make your policy more affordable, it can be wise to ensure there’s still enough for your family’s financial needs, so your loved ones are covered when the worst happens.