Life Insurance for smokers in New Zealand

How does life insurance for smokers work?

The answer is like any other life insurance, but chances are the premiums are higher compared to non-smokers.

According to SmokeFree, in 2016, an estimated 13 per cent – that’s 610.000 – NZ men and women smoked at least once a month.

Of these, 87 per cent smoked every day, or 532.000 NZ men and women.

That’s a lot of smokers. And that is a lot of tobacco.

On average 9.7 cigarettes a day, or 5.2 million cigarettes each day. This means 1.9 billion cigarettes every year.

If we say an average pack of 20 cigarettes is about $23, this would mean the annual tobacco industry revenue is over 2.2 billion dollars.

Within the last 12 months, have you used…..

To insurance companies, cigarette smoking is one of many tobacco-related products. When an Insurer offers life insurance for smokers in New Zealand, the following information is vital in assessing price for the policy:

  • Cigarettes
  • Cigars
  • Pipe tobacco
  • Chewing / smokeless tobacco
  • Nicotine patches / tablets / gum

If you have been using any of these products, you may have to pay more for your life insurance policy.


Is Life Insurance for Smokers more expensive?

Tobacco users in New Zealand, generally pay higher premiums for their life insurance than people who don’t use tobacco. Reason being, people who smoke and use tobacco products, are more likely to die—and at an earlier age—than people who don’t.

According to the Ministry of Health, about 5.000 people die each year in New Zealand because of smoking or second-hand smoking, that’s 13 people a day.
Smoking is the cause of over 80 percent of lung cancer in New Zealand.

In other words, people who smoke are at a higher risk of premature death.

The manufacturer of Marlboro, Philip Morris International which sell more than 130 brands worldwide, write on their website:

Cigarette smoking is addictive and can cause certain diseases such as lung cancer, cardiovascular disease, and emphysema.

Just over 16 percent of all deaths in New Zealand are from tobacco use.

In comparison, there were in 2016, 210 road deaths in New Zealand according to New Zealand Transport Agency.

One person dies every 2 hours from a tobacco-related disease.

British American Tobacco New Zealand, also called BAT is aware of the harmful effects of smoking and write on their website

Along with the pleasures of smoking, there are real risks of serious diseases such as lung cancer, respiratory disease and heart disease, and for many people, smoking is difficult to quit.

So it’s no surprise insurers consider life insurance for smokers at higher risk, and therefore charge a higher premium.

A life insurance company is far more likely to pay out a benefit to the beneficiaries much earlier than they would have for non-smokers, simply because smokers are at higher risk of dying prematurely.

Therefore people who smoke usually have to pay higher premiums. At LifeCovered, we understand there is no ‘one size fits all’ when it comes to insurance. We have many years experience in negotiating with insurers, on your behalf and deal with various people and different life scenarios.

There are a few factors involved when insuring considering life insurance for smokers, so it would benefit you to work with an insurance broker, who deals with these issues on a daily basis.

You also need to know, that even if you have ticked the ‘Yes I have smoked within the last 12 months’box, it doesn’t mean you are paying higher premiums always.

If you stop smoking for a year, you could qualify for non-smoker premiums. It’s possible that the insurance company would re-evaluate your situation and then lower your life insurance premium as a result.

Affordable Life Insurance for Smokers

As a smoker or tobacco user, you have a wide variety of options available in selecting the best and most affordable life insurance policy for your situation. This requires some time and effort, but it’s worth it. We have the experience and will do the hard work for you in finding life insurance for smokers.

At LifeCovered, we will work closely with you and do the research necessary in finding the best policy and price.

Because our business model is all about long-term affordability, premiums that don’t increase, we work closely with you in tailoring a solution around your needs. No money or time wasted.

Find the Best Life Insurance Plan for You

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