Correlation between Smoking and Life Insurance Premium

Today, with the growing stress at home and at workplace, more and more people are taking to smoking. In addition to this, you find many people who are influenced by the fad of smoking. Smoking has thus become a reality, which few of us can deny. From the point of view of an insurance company, smoking involves a lot of risk. When an insurance company grants life insurance policies, it looks into the health background of the person. If a person is a heavy smoker, the likelihood of him contracting smoking related diseases is very high. Hence, the rates of insurance premium will vary from a non-smoker to a smoker. This way, they are protected from the additional risks of granting a life insurance policy to a smoker. However, if you are someone who have quit smoking, then things may turn in your favor. Life insurance premium for smokers in Canada is generally higher than that for non-smokers.

Another aspect that the life insurance company looks into is how long ago a person has quit smoking. The time when a person quits is very essential and important while deciding the premium that the person is eligible to pay. The effects of smoking last for a long time. Smoking can influence the health of a policyholder very significantly. Hence, the insurance company or the insurance broker will be interested in finding out the time span that has elapsed since the person has quit smoking. Life insurance premium for smokers in Canada is ascertained on the following basis:

A person who has quit smoking for a period of more than five years is may qualify under the preferred plus class.
A person who has avoided the vice of smoking for a period of three years may qualify under the category as preferred.
While a person who has quit smoking since a period of one year or less is categorized as standard class.
The life insurance premium payable by a person depends on the above categories.  Life insurance premium for smokers in Canada may vary marginally for different insurance companies. They believe that a person who has quit smoking for a longer time span is less likely to die due to illnesses related to smoking. Hence, they award lower premium rates to such people who are away from cigarettes for a longer duration. Alternately, they charge higher premium rates for life insurance granted to people who are smokers or have quit smoking very recently. All this will also depend on the health condition of the person in question. In fact, you will have to undergo a thorough health checkup if you have been a smoker for many years. The various reports for tests like blood pressure, cholesterol levels, sugar levels, obesity etcetera will be analyzed and only if the insurance service provider is satisfied that the risk is worth taking, then a life insurance policy will be issued in your name.
Millions of people who have been chronic smokers have tried to lie about the condition while taking a life insurance policy. Hence, the insurers are very cautions in respect of life insurance premium for smokers in Canada.

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Ensure that you have a Life Insurance Policy
Although you do it everyday and do not consider it so dangerous, these are some of the most dangerous jobs according to the statistics of the Bureau of Labor: pilot of an airplane, truck driver, laborers, timber cutters, farm occupations, construction laborers, groundskeepers, people working as police and detectives, salesmen, carpenters. You may feel that as a salesperson you are working in one of the most common and simplest occupations, one with the least mount of risk. However, the occupation of salesperson finds its name on this list instead of many other seemingly dangerous professions. This brings us to the most important question of having a life insurance policy. Whichever the kind of occupation that you undertake, having a life insurance policy is essential. It also does not matter if you are single or married, whether you have someone depending on you or not, even if there is no one who depends on you financially, it is always essential that you have a life insurance Kingston policy.

However, it is essential for you to have a life insurance policy if any of the following are true:

If you are married and you have a family that depends on your salary
If you have a family with a wife and children
You have ageing or disabled parents or relatives depending on your income
If you have a poor salary and your savings, investments and pension amounts will not be enough to support you and your family in later years, or after your death
If you have an estate and may have to pay huge taxes eventually
If you are an entrepreneur
Accepting that you need a life insurance policy and judging the amount of insurance policy are not always easy. One can never assess the exact amount that will be enough for one’s family in their absence. You can only have an approximate amount that you think may be able to give your family the same lifestyle that you wish for them. In order for you to do this, you can take the help of an insurance agent or an insurance company. The insurance company will send over one of its representatives to help you to find a suitable policy. Life insurance Kingston is synonymous with a life insurance policy for you.

In fact, one of the most important rules while purchasing a life insurance policy is that your insurance amount should be able to pay off all your debts. This may include mortgages, car loans, home loans or any other loans that you have taken, including credit card outstanding amounts. Life insurance Kingston not only takes care of your debts but also relieves you as you can factor childcare for your spouse; include expenses of college education for your children.

In fact, you will be surprised to know that your insurance needs keep on changing periodically. Hence, you must buy your life insurance Kingston policy after careful consideration, taking into account all future financial needs of your family, especially your children, pension needs of your spouse and health requirements of your parents.