Term life insurance if you smoke, vape or chew

At a glance

What it is

Life insurance for a set period: 10, 15, 20, 25 or 30 years

Who it is for

People with a mortgage, children, or income others depend on

Price

Usually the lowest cost per dollar of coverage while the term runs

After the term

Coverage ends, renews at a much higher price, or converts to permanent coverage if the policy allows

How tobacco affects the price

Carriers rate tobacco use in classes: most treat any nicotine use in the last 12 months as a smoker rate, which can be two to three times the non-smoker premium for term life. Some carriers treat occasional cigars, nicotine gum or vaping differently, so the same person can receive very different offers. If you quit, ask when you would qualify for a non-tobacco rate; many carriers require 12 months nicotine-free.

How term life insurance works

You choose an amount and a term. If you die during the term, the insurer pays the amount to your beneficiary, generally free of federal income tax. If you outlive the term, the coverage ends; there is no cash value. That simplicity is why term is usually the least expensive way to cover a large need for a defined stretch of years, such as until the mortgage is paid or the children are through school.

Choosing an amount and a term

A common approach is to add up what you want covered (remaining mortgage, years of income to replace, education, final costs), subtract what you already have (savings, employer coverage, Social Security survivor benefits where they apply), and match the term to the longest obligation. Someone with a 27-year mortgage and a toddler often looks at 30 years; someone five years from paying off the house may look at 10.