For decades now we’ve known that smoking is bad for our health – the research has conclusively shown that smoking increases your risk of suffering from cancer, heart disease, stroke and lung disease, among many other conditions.
Clyde Parsons, actuarial executive of BrightRock, explained this is the reason why smoker rates are higher than non-smoker rates in life insurance.
“Smokers can pay more than double the premiums a non-smoker would pay, depending on factors, such as age, pre-existing conditions like those mentioned above and how you’ve structured your policy.’’
But did you know regular users of e-cigarettes are also charged smoker rates when it comes to life insurance?
Parsons highlighted why you get charged smoker rates and what you can do about it.
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Why do vapers get charged smoker rates?
E-cigarettes are battery-operated products designed to deliver nicotine, flavour and other chemicals. They turn chemicals, including nicotine, into an aerosol that is inhaled by the user.
Most insurers in South Africa, including BrightRock, charge the users of e-cigarettes the same rates they charge smokers of traditional tobacco products.
There are several reasons for this.
Firstly, e-cigarettes, such as vapes, contain smaller doses of nicotine, and other harmful substances, such as ultrafine particles, flavourants and heavy metals.
While the levels of nicotine are smaller than they are in traditional tobacco products, they still pose some risk to the long-term health of the user.
That being said, some e-cigarettes can contain even more nicotine than normal combustible cigarettes.
Secondly, as e-cigarettes are still relatively new, not enough research has been done to investigate the health risks that come with using them.
However, some of the available research shows consuming e-cigarettes has been associated with an increased risk of chronic cough, bronchitis and asthma.
E-cigarette smokers are also believed to be more susceptible to respiratory infections and poor cardiovascular health.
What if I’m vaping because I want to quit smoking?
The World Health Organisation, which has stated unequivocally that e-cigarettes are harmful to your health, said of the world’s 1.1 billion smokers, 60% want to quit.
Many tobacco smokers use e-cigarettes to help them quit.
When underwriting clients for life insurance at BrightRock, they ask if they smoke or use any other nicotine products other than cigarettes, such as cigars, pipes, hubbly bubblies, e-cigarettes or even nicotine gum.
If clients have used any of these products within the preceding 12 months before their applications, they’ll charge them smoker rates.
This is because smokers – regardless of whether they’re inhaling nicotine from combustible or e-cigarettes – are most likely to relapse within 12 months of quitting.
How do I get non-smoker life insurance rates?
If you’re one of the 600 million people in the world wanting to quit smoking right now, then you’ll be happy to hear that changing this habit is not only worth it from a health perspective but also a life insurance premium perspective.
If you haven’t smoked or used nicotine products for 12 months, then you can apply to get non-smoker life insurance rates.
Your insurer will ask you to sign a non-smoker declaration and do a cotinine urine test.
If the test comes back negative then this could reduce your premium by up to half, which, at a time when everyone’s watching their rands and cents is definitely worth considering.
What if I have a policy and start smoking or vaping?
The effect on your cover and premiums will depend on your insurer. At BrightRock, you don’t need to let them know if you start smoking or vaping, and your premiums and cover will not be affected. Having started smoking after your policy started won’t affect your claim.
However, it’s important to know that many insurers in the market require you to notify them if you start smoking or vaping. If you don’t, they can reduce, or even decline your claim as a result.
(Information: BrightRock)
