Term Life Insurance for Smokers on a Budget

After 16 days in office, President Obama put an extra 22 percent in tax on cigarettes. This contributed $22 billion to the federal revenue. It forced smokers to pay more to stave off their cravings for nicotine and created a drop in policy applications for term life insurance for smokers.

This tax increase also resulted in the historically low use of tobacco as almost three million Americans kicked the habit in response to the price hike. One among the quitters is Nick Trenchall, 38 of Hackensack, NJ, who started smoking during breaks in his part time job  while he was pursuing a college degree in 1992. This occasional urge soon changed to a pack a day habit, and from there on his love for cigarette smoking only increased.

Nick was unaware that he had become addicted to nicotine; he found it an effective way to socialize with other smokers, puffing and trading ideas at a place away from the crowd, at times it was just to calm his nerves or collect his thoughts. For whatever reason, he started to realize that his desire for a cigarette did not measure up to the amount he had to spend to purchase them. This finally made him quit.

Not every one of us is as strong willed as Nick. If you unable to suppress your urge for a cigarette or have had several failed attempts in the past,, then the way out is to get yourself insured.

There are several options in term life insurance for smokers.  Here are some tips that can increase your chances to find economical coverage. But first, let’s just familiarize ourselves with the various types:.

Preferred Plus – available at lowest possible rate it can easily be considered as the most ideal class, one can save considerable money in it. Even though it is the most preferred option it has some stringent entry requirements not every person can pass.  Insurance companies ask for thorough medical checkup, and only those who get through in the first attempt are considered for preferred plus.

Preferred – Smokers can also apply for the preferred class of term life insurance provided that they are able to clear the nicotine test. Resist smoking at least one week prior the scheduled medical date in order to pull off the stunt.

Standards – This is the most competitive class in term life insurance for smokers. Even people who have had a medical condition such as weight problems, high cholesterol levels and other issues can be accepted in this class. The insurance company needs to be convinced that the concerned person is taking appropriate measures and medication to control the condition.

Substandard – People involved or working in dangerous conditions such as bungee jumping, mountain climbing, skydiving, working in mines or chemical manufacturing companies can get coverage in this class. People who have serious medical issues can be in the same class.

Tips to find budget friendly term life insurance for smokers:

1. Reduce tobacco consumption –

Even though many smokers are put off by this thought, it can be a step towards quitting smoking forever. This will contribute towards their life span and help get coverage at better rates. Try to keep yourself occupied in a task that doesn’t give you time for other things and it will reduce your tobacco consumption.

2. Don’t lie about past conditions

You can’t get away with hiding a pre existing condition. During the underwriting process the insurer can find out about your health condition even if you did not mention it. If you were fortunate enough to pass the process and died due to smoking related illness than the insurance company will deny your payout.

3. Term life insurance for smokers with no medical –

Health professionals have repeated several times about the ill effects of smoking on health. If smoking has caused damage that is irreparable that you can go for this option. It may be a bit costly but you will have peace of mind.