Term Life Insurance For Tobacco Users

Tobacco use has always been of concern when you are applying for term life insurance. The cost of your premium is based on your age, gender and even occupation. Premiums are based on your lifestyle and what your medical history is like. For the most part, insurance companies want to make sure you start out healthy before issuing you a policy.

Taking out term life insurance is no exception. There are several requirements you must meet when obtaining any kind of insurance.

If you smoke marijuana, you must also disclose that you use drugs on your application form. They make a clear distinction between the use of cigarettes, cigars, chewing tobacco, pipes, smokeless tobacco, nicotine gum, marijuana or a nicotine patch to quit your smoking habit. These select companies base their premiums upon the type of tobacco and frequency of usage. The key is to find these select insurance companies that individualize their rates.

Despite this unfair categorization, there are some companies that do make the distinction. If you are a person who smokes an occasional cigar you are treated the same as a person who smokes two or three packs of cigarettes per day. Some insurance companies do not distinguish between the form and frequency of your tobacco use. Tobacco use in any form already sets you apart from non-users.

Lifestyle Discrimination?

While automatic higher premiums set for smokers are seemingly unfair and may even be viewed as lifestyle discrimination, it is also important to understand the perspective of insurance companies. Generally, smokers miss work more often than non-smokers due to respiratory problems. It is believed, although not clinically proven, that smoking lowers the immune system defenses, therefore causing smokers to be more susceptible to certain smoke related illnesses than non-smokers. Smoking has also always been believed to cause premature death. Ailments such as lung cancer, high blood pressure, heart attacks, emphysema, severe asthma, stroke, and other forms of cancer are all associated to nicotine use. Current studies have also found a connection between heavy tobacco use and Alzheimer?s disease. Certainly one can compare the consistent use of a known carcinogen to someone who is employed at a job considered to be ?hazardous duty.? Both are subject to higher premiums due to higher risk for insurance companies to carry you.

Tobacco Use and Low Cost Term Life Insurance

For example, as long as a smoker is in otherwise excellent health and is at a reasonable weight, he or she may obtain $250,000.00 worth of coverage for about $40 per month over a 10 year period. Smokers or nicotine users are now eligible for 10, 15, 20 or 30 year term periods at low rates. In recent years some insurance companies have opted to offer low cost term life insurance for tobacco users.

In recent years some insurance companies have opted to offer low cost term life insurance in the past, you have probably been disappointed by the high premiums quoted to you. In recent years some insurance companies have opted to offer low cost term life insurance in the past, you have probably been disappointed by the high premiums quoted to you. If you are smoker who has tried to obtain term life insurance in the past, you have probably been disappointed by the high premiums quoted to you.

Tobacco users can now afford to protect their families at much more affordable rates and doing due diligence in shopping out your quotes will save you money in the long run. that only take minutes. Doing an internet search is the fastest way to obtain a quote online as many companies are now doing ?Insta-quotes? By shopping out the different insurance companies, you are sure to find one that does not penalize you excessively for tobacco use.

The best thing to do would be to research out companies and their policies for tobacco users.

Term Life Insurance With Return Of Premium

You can even borrow against some of the policies if you have accrued enough credit. and develop cash value over the years. Unlike term life insurance , these two options are ???owned??? Those who are unhappy with that notion typically end up buying other types of life insurance such as permanent life or whole life insurances.

Ultimately, you paid for something you did not end up needing. any premiums paid over the years are basically gone. In the event that you are still alive at the end of your ???term,??? You are paying for peace of mind and protection, knowing your family would be financially secure upon your untimely death.

Term life insurance is relatively inexpensive for this very reason.

This new offering is called Term Insurance with Return of Premium (ROP). Because many applicants were unhappy that they had to choose one or the other (no cash value versus something that offers some type of savings account), many insurance carriers developed a happy medium. Cash value policy premiums are significantly more costly.

The beauty of term life as opposed to permanent or whole life is of course the lower premiums.

Benefits of Term Life with ROP

Term Life Insurance with Return of Premium (ROP) actually has more in common with forms of permanent life insurance than with true term life with a pure death benefit.

A Term life insurance with ROP policy offers partial or complete return of premiums in a lump sum if the insured is still alive at the end of the guaranteed level period, usually 15, 20 or 30 years. As with traditional term life, if the insured dies during the term, the death benefit is paid as with traditional term life insurance without a return of premium.

Term life with ROP works almost the exact same way as any other cash value policy. Premiums on this type of policy are much more costly because policy owners are refunded the premiums paid over the term if said policy owner is still alive. Like permanent life insurance, extra premiums are set aside in a savings account accumulating to an amount of money equal to the premium paid by the end of the term. While Term life with ROP serves as a type of savings account, keep in mind that the return is substantially less than other investment arenas such as stock potentials.

Healthy owners of the ROP products plan to apply their lump sum amounts toward future expenses, such as college tuitions, weddings, opening a business, trips or a house down payment. ROP policies are appealing to people who lead healthy lifestyles as they believe they will live past the term and receive the large refunded sum. Aside from acting like permanent life insurance in terms of being a savings vehicle, some ROP products also allow loans on a percentage of accumulated premiums already paid.

You may also obtain an online quote in minutes. Check with your financial advisor if you think Term life insurance with Return of Premium might be the right choice for you.