Do e-cigarettes have an impact on life insurance?

If you are smoking, it is going to impact your insurance rates, whether you are using e cigarettes or the original tobacco and nicotine cigarettes. Honestly, insurance companies group all smoking into the same basket.

Sure, you may have prevented exposure to the harmful chemicals that were in traditional tobacco-containing cigarettes in favor of the e cigarettes’s nicotine mist without a flame, smoke, or ash.

The life insurance carriers evaluate the risk factors that typically contribute to a lower death age. If that age happens to be during your life insurance policy, then you will definitely pay higher life insurance rates.

If you think that the insurance carrier will not find out, your beneficiaries may be in for a sad and horrible surprise later.

The reason is because if you lie and say you do not smoke, and your beneficiaries go to file for the death benefits, the tobacco would be in your system. They may deny the benefits for that reason.

On the other hand, if you lie on your application, then submit to a medical history and blood test, the nicotine would be in your body. If you lie on a life insurance application, it constitutes fraud.

According to the terms of your policy, though, you will probably only be called out on attempting to defraud your life insurance carrier during the early years of the policy.

For instance, if you submit to a medical questionnaire and blood test, you would probably not get the policy or would be given smoker’s rates. The reason is that the nicotine would flag you as a smoker, whether it is an e cigarette or traditional smokes.

In addition, policies generally have a two-year period that is like a probationary period.

If you pass during that time and are found to have lied, they may deny the claim. If you make it past that point, they will pay it.

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Making Informed Insurance Decisions

Insurance companies, just like federal regulators, have not entirely gotten their heads wrapped around the new concept of e cigarettes. For now, they are lumping it in with traditional smoking.

Either way, life insurance poses a lot of decisions for policy holders, and people shopping for insurance. There are basically two types of polices – term life and whole life.

Term life insurance runs for a term that is specified, such as 10 years, 15 years, 20 years, or 30 years.

If you have dependents then it is likely you may want to cover them financially if you are pulled from their lives prematurely. That’s probably the most common reason to buy coverage. Otherwise, if you have no dependents, then it is like throwing money out the window.

If there is no one who would rely on you, then you would not need a life insurance policy.

Whole life insurance offers up a death benefit but has more perks. Rather than end at the end of a term, it generally lasts your whole lifetime.

Some stop insuring you at 100, or 110, so make sure you read the proposed policy before you sign up for anything.

A portion of your premiums will go toward your death benefit, and also to building cash value of the policy.

The cash value is something many people use for retirement, to pay off the mortgage, or to pay their kids college expenses.

Depending upon the type of policy you purchase, you may take a loan out, or make withdrawals that you do not have to repay.

According to some sources, permanent life insurance, is best left to people who make more than one-quarter-million dollars per year or more, and who have no debt, and ample savings.

That includes having costs of higher education covered in a fund or savings account.

In general, term life is the policy for the masses. It is the cheapest, and straight forward. Permanent life insurance policies come in way more expensive when you go for quotes.

Whole life is more expensive than term but less costly than variable, and universal life insurance policies.

Character Traits and Cost

Insurance policies cost differing amounts based upon what types of perks you may receive, and the likelihood your beneficiaries will make a claim for death benefits.

Smokers, for instance, pay much higher premiums than do non-smokers.

In addition, people with dangerous hobbies, such as flying planes, and snowboarding pay even more than people who knit in the safety of their own home for fun.

A family history of heart disease and chronic, pernicious diseases, would also pay higher premiums. Those who drive recklessly, as signified by a load of traffic violations and speeding tickets, also see jacked up rates for the same coverage.

Working on an oil rig or as a firefighter is generally more dangerous than working at home as a virtual assistant. At the first two jobs, risks include fire, explosion, and therefore an increased risk of premature death. The assistant might get a paper cut, or deal with a paper jam, by comparison.

When applying for insurance policies, carriers take into account all of the data and facts that they can collect about you and your lifestyle.

It is up to you to take advantage of the free quotes from the various types of life insurance products to find out what may work best for you and your budget.

In some cases, you may be better off investing your money yourself rather than tying investments to your life insurance policy.

Though, if you are more concerned about ensuring that you have coverage while you are raising a family, it may be easier to buy both products at the same time.

Weighing free quotes and getting estimates is the best way to handle the decision-making process.

If you are concerned about the impact of e cigarettes on your insurance policy, know they are considered like traditional cigarettes. That means that your rates would increase considerably if you smoke at all. Otherwise, consider quitting smoking to get the best rates.

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