Final Expense Insurance for Smokers: Real Costs & Quotes

Smokers typically pay 50% to 100% more for final expense insurance compared to non-smokers. However, many carriers still offer affordable coverage options specifically designed for tobacco users. Based on my experience as a licensed broker, I've helped hundreds of smokers secure burial insurance with rates starting as low as $28 per month for $10,000 in coverage.

The key is knowing which carriers offer the best rates for tobacco users and understanding how smoking history affects your premium. Some insurers are much more forgiving than others when it comes to cigarette, cigar, or pipe smoking.

Smoker Rates by Age and Coverage Amount

Based on current carrier rate sheets from our partnered insurers, here's what smokers can expect to pay for final expense insurance coverage:

These rates represent simplified issue policies that require answering health questions but no medical exam. For smokers with significant health issues, guaranteed issue life insurance may be the better option, though it typically includes a two-year waiting period.

Best Carriers for Smokers

Not all insurance carriers treat smokers equally. In my practice, I've found these carriers offer the most competitive rates for tobacco users:

Mutual of Omaha consistently offers some of the best rates for smokers who are otherwise healthy. Their underwriting guidelines are clear about tobacco use, and they don't penalize occasional cigar smokers as heavily as daily cigarette users.

How Carriers Define Tobacco Use

Understanding how insurance companies classify tobacco use is crucial for getting accurate quotes. Most carriers use these definitions:

Tobacco User Classifications:

• Cigarettes: Any use within 12-24 months qualifies as tobacco use
• Cigars: Daily use is tobacco, occasional use may qualify for non-smoker rates
• Pipes: Similar to cigars, frequency matters more than occasional use
• Chewing tobacco/snuff: Always classified as tobacco use
• E-cigarettes/vaping: Most carriers now treat as tobacco use
• Nicotine patches/gum: May or may not count depending on the carrier

The key question most carriers ask is: 'Have you used tobacco or nicotine products in any form within the past 12-24 months?' Be honest in your answers, as lying on an application can void your policy.

Application Process for Smokers

The application process for smokers follows these steps:

1. Health questionnaire: You'll answer 5-10 health questions including tobacco use frequency
2. Tobacco history: Expect questions about when you started, how much you smoke daily, and any quit attempts
3. Medical history: Smoking-related conditions like COPD, heart disease, or cancer require disclosure
4. Underwriting review: Carriers evaluate your overall risk profile, not just smoking status
5. Policy issuance: Most smokers can get same-day approval if they meet health guidelines

For no medical exam life insurance, the process typically takes 24-48 hours from application to approval. Smokers don't face additional delays compared to non-smokers.

Real Client Examples

Based on my experience helping smokers get coverage, here are three real scenarios showing actual costs and outcomes:

Scenario 1: Janet, Age 62, Cigarette Smoker
Janet smokes about a pack a day and wanted $15,000 in coverage. She has high blood pressure but it's controlled with medication. We placed her with Mutual of Omaha at $87 per month. Her smoking habit increased her premium by about 60% compared to a non-smoker, but her overall health qualified her for simplified issue coverage with immediate death benefit.

Scenario 2: Robert, Age 68, Cigar Enthusiast
Robert enjoys 2-3 cigars per week and needed $25,000 coverage. Since he's not a daily tobacco user, American Amicable offered him a middle-tier rate of $198 per month. This was only about 30% higher than non-smoker rates because of his infrequent use pattern.

Scenario 3: Maria, Age 71, Former Smoker with COPD
Maria quit smoking two years ago but has COPD from her 40-year smoking history. Traditional coverage was too expensive at over $300 per month for $20,000. We secured her a GTL guaranteed issue policy for $168 per month with a two-year waiting period, which better fit her budget and health situation.

How to Get Lower Rates

Here are proven strategies to reduce your premiums as a smoker:

Consider Quitting: Most carriers offer non-smoker rates after 12 months tobacco-free. For a 65-year-old, quitting could save $600+ annually on a $20,000 policy.

Shop Multiple Carriers: Rate differences between carriers can be significant. I've seen variations of 25-40% for identical coverage amounts.

Choose the Right Coverage Amount: Don't over-insure. Burial insurance costs average $7,000-$12,000, so a $15,000 policy often provides adequate coverage.

Consider Guaranteed Issue: If simplified issue rates are too high, guaranteed acceptance policies might offer better value despite the waiting period.

Apply While Healthy: Don't wait until health problems develop. Smoking plus other conditions can push you into guaranteed issue territory where rates are higher and benefits are limited initially.

Annual vs Monthly Payments: Some carriers offer 5-8% discounts for annual premium payments, which can offset part of the smoker surcharge.

Frequently Asked Questions

Can I get final expense insurance if I smoke?
Yes, all major carriers offer coverage for smokers. You'll pay higher premiums, but coverage is definitely available. In my practice, I've never had a smoker declined solely because of tobacco use.

How much more do smokers pay for burial insurance?
Smokers typically pay 50-100% more than non-smokers. For example, a 65-year-old non-smoker might pay $45/month for $10,000 coverage, while a smoker pays $65-85/month for the same benefit.

What if I quit smoking after getting a policy?
Most carriers allow you to request non-smoker rates after being tobacco-free for 12 months. You'll need to complete a new application and possibly provide medical records proving you've quit.

Do I have to take a medical exam as a smoker?
No, simplified issue and guaranteed issue policies don't require medical exams. You'll answer health questions on the application, but there's no blood test or physical examination needed.

Will occasional cigar smoking disqualify me from non-smoker rates?
It depends on the carrier and frequency. Some insurers consider 1-2 cigars per month as non-tobacco use, while others have zero tolerance. Honesty is crucial as lying can void your policy.

Can I get immediate coverage as a smoker?
Yes, simplified issue policies offer immediate death benefits for smokers who qualify health-wise. Guaranteed issue policies have waiting periods regardless of smoking status.

What happens if I lie about smoking on my application?
Insurance fraud can void your policy entirely. During the contestability period (first two years), carriers can investigate and deny claims if they discover undisclosed tobacco use. Always be honest about your smoking history.

Are e-cigarettes and vaping treated the same as cigarettes?
Most carriers now classify vaping and e-cigarettes as tobacco use for underwriting purposes. Some may offer slightly better rates than traditional cigarettes, but you'll still pay smoker premiums.