4 Best Life Insurance Companies for Smokers in Canada

Finding the best life insurance companies for smokers can be more challenging, given the increased health risks associated with tobacco use. However, some life insurance companies recognize that smokers have diverse profiles and offer more accommodating rates and benefits tailored specifically for this demographic.

This guide will explore the top life insurance companies for smokers across Canada and delve into the unique features that make their policies smoker-friendly.

How Smoking Affects Life Insurance Eligibility

Before diving into the top recommendations, it is helpful to understand how smoking can impact your eligibility for life insurance coverage.

Smoking cigarettes, cigars, pipes or using other tobacco products are activities that largest life insurance companies deem to increase health risks substantially. Nicotine and the many additional chemicals in tobacco products can elevate risks for numerous illnesses over time, including cancer, heart disease, stroke, lung disease and more.

When reviewing life insurance applications, the vast majority of insurers will classify any individual who has smoked or used tobacco within the past 12 months as a “smoker” for risk assessment purposes. This means if you have smoked even one cigarette or cigar over the past year, life insurance companies will often place you in the smoker category when evaluating your eligibility.

In some cases, using nicotine replacement products like gum or patches can also lead to a smoker designation. Furthermore, some insurers are now viewing electronic cigarette use or vaping as equivalent to traditional cigarette smoking when evaluating applicants.

The bottom line is that if you have consumed any tobacco or nicotine products within the past 12 months, regardless of the frequency or quantity, you can expect to be classified as a smoker by most life insurance companies. Very few make exceptions for extremely occasional or light use.

Being designated as a smoker can increase your insurance premiums anywhere from 50% on the low end to over 100% higher than policyholders classified as non-tobacco users. The variance depends on the insurer along with factors like your age and health conditions.

The premium gap tends to widen as applicants get older since the compounded health effects of long-term smoking over many years elevate risks further for older demographics.

While shopping for life insurance for smokers can often translate to higher costs, some insurance companies recognize that not all smokers have equal risk profiles and utilize more nuanced assessment models. This guide will uncover providers that offer more smoker-friendly coverage solutions.

To simplify your decision, our team of experts has thoroughly researched the Canadian insurance market and identified the Best Life Insurance Companies based on policy type. Explore the articles focused on each coverage type to compare our top-rated recommendations.

• Best critical illness insurance companies in Canada
• Best whole life insurance companies in Canada
• Best universal life insurance companies in Canada
• Best disability insurance companies in Canada
• Best term life insurance companies in Canada
• Best no-medical life insurance companies in Canada
• Best family life insurance companies in Canada
• Best children’s life insurance companies in Canada
• Best mortgage life insurance companies in Canada

Industrial Alliance – Best Overall Life Insurer for Smokers

Industrial Alliance (iA) emerges as the #1 recommendation out of all life insurance companies for smokers in Canada based on policy affordability.

iA offers some of the most competitive premium rates available for smokers across all age ranges, from young adults in their 20’s to seniors in their 60’s and 70’s. Their highly affordable rates make iA policies very attractive for smokers aiming to secure life insurance protection.

Beyond affordable pricing, iA policies include other policyholder benefits:

Flexible Coverage Terms – iA’s Pick-A-Term life insurance product allows smokers to select customized coverage terms ranging anywhere from 10 to 40 years. This is much more flexible than most term life policies that lock you into pre-set 10, 15, 20 or 30-year terms. The flexibility to tailor your ideal coverage duration is a major perk for smoker life insurance policies.

Premium Discounts for Quitting – iA offers premium discounts through their “Non-Smoker Rates” program which rewards policyholders who quit smoking while their policy is active. If you are able to quit and prove you have been smoke-free for an extended period, you can apply to have your rates reduced. This incentive makes iA a great option if you are determined to kick the habit.

Lenient Underwriting – iA also tends to be more lenient than other insurers when it comes to occasional tobacco use. Using cigars moderately or occasionally cannabis may still allow you to qualify for a non-smoker rating in some cases, which helps keep your costs lower. Their underwriting focuses more on your overall health history beyond just tobacco use.

For smokers who want straightforward, affordable life insurance coverage, iA is tough to beat. Use the premium quotes below to see how iA’s rates stack up:

Sample Monthly Premiums for $250,000 Coverage

With premiums 15-20% below average, iA should be strongly considered when shopping for best life insurance companies for smokers based on the potential cost savings. Their flexible coverage terms and incentives to quit smoking down the road make their policies a win-win.

Full review: Industrial Alliance Life Insurance

Foresters Life Insurance for Smokers – Best Smoker Life Insurance for Quitting Incentives

Foresters Financial is an insurance provider that offers innovative life insurance solutions tailored specifically for individuals who smoke but are interested in quitting.

Their unique Quit Smoking Incentive Plan provides discounted non-smoker rates on both Advantage Plus and Non-Participating Whole Life policies if the insured quits smoking within the first two policy years. For the first two years of the policy, Foresters will classify you as a non-tobacco user and offer discounted premium rates as if you were a non-smoker.

If, at any point in the first two years, you are able to medically prove you have quit smoking, Foresters will lock in those discounted non-smoker rates for the remainder of your policy term. This creates strong financial motivation to become smoke-free and rewards you with substantial savings.

Beyond the quit-smoking incentive, Foresters offers other smoker-friendly perks, including:

• Competitive rates for cigar or pipe smokers who do not use cigarettes
• Additional premium discounts for completing their smoking cessation program
• Lenient underwriting for marijuana users or smokers with moderate pre-existing health conditions

By incentivizing smokers to quit, Foresters helps their policyholders live a healthier lifestyle while saving them significantly on premium costs.

Competitive Rates for Smokers

Here are Foresters’ smoker rates for key products:

Advantage Plus 10-Year Term Life

Advantage Plus 20-Year Term Life

Non-Participating Whole Life Insurance

If you are motivated to quit smoking, Foresters provides the perfect incentive to finally kick the habit and save on your policy.

Full review: Foresters Financial Life Insurance

Sun Life Insurance for Smokers: Best for Diverse Tobacco Use

Sun Life Financial stands out for its accommodating underwriting practices towards smokers who occasionally use products like cigars, pipes and cannabis but do not smoke cigarettes habitually.

Whereas most insurers lump all tobacco usage under the same high-risk “smoker” category, Sun Life evaluates each case individually and offers more leniency for certain products used infrequently.

Smoker-Friendly Highlights

• Will provide non-tobacco rates for occasional cigar smoking (less than 12 per year)
• Significantly lower rates for pipe smokers compared to cigarette users
• Considers cannabis use less risky than smoking and may offer discounts
• Rewards for completion of smoking cessation or tobacco-free programs

Sun Life’s flexible underwriting provides a pathway to more affordable rates for borderline cases that don’t fit the typical smoker risk profile. This nuanced approach helps save certain tobacco users money on their coverage.

Competitive Rates for Smokers

Here are sample monthly premiums for different coverage amounts:

$250,000 Term Life Coverage

$500,000 Term Life Coverage

$1,000,000 Term Life Coverage

Range of Products

Sun Life offers various life insurance products for smokers:

• Term life insurance: 10, 15, 20, 25, 30 year options
• Permanent life insurance: Universal life and whole life options
• Critical illness and disability insurance are also available

In summary, Sun Life stands out as a highly recommended insurer for smokers needing life coverage due to its competitive pricing, flexible underwriting, incentives, and variety of insurance products.

Full review: Sun Life Insurance Canada

RBC Life Insurance for Smokers – Most Lenient Underwriting

RBC Life Insurance offers competitive smoker rates across a wide range of life insurance products. Their flexible underwriting provides options for occasional tobacco users to qualify for non-smoker pricing. RBC Life also offers incentives for smokers to quit.

Competitive Rates for Smoker Policies

RBC Life Insurance offers reasonably priced premiums for smokers that are comparable to or lower than competitor rates across ages 25-65. Here are sample monthly premiums for a range of different policies:

$500,000 10-Year Renewable Term Life Policy

$500,000 20-Year Renewable Term Life Policy

$100,000 Whole Life Insurance Policy

$50,000 Critical Illness Insurance Policy

$2,000 Monthly Benefit – Disability Insurance Policy

Flexible Underwriting

RBC Life offers non-smoker rates in certain situations:

• For cigar smoking less than 12 per year
• For occasional cannabis use < 2 times per month
• Significantly lower rates for vapers compared to cigarette smokers

Incentives to Quit

• Discounted premiums for completing a monthly smoking cessation program
• Non-smoker rates after 12+ months of smoke-free and medical exam

With competitive premiums, lenient underwriting, and incentives to quit, RBC Life Insurance provides smoker-friendly coverage.

Full review: RBC Life Insurance

What to Evaluate When Comparing Smoker Policies

When reviewing life insurance companies as a smoker, be sure to evaluate the following key factors:

Affordable Premiums – Given higher base rates for smokers, prioritize finding policies with the lowest absolute rates. Comparison shop quotes from multiple top insurers.

Incentives for Quitting Tobacco Use – Some policies reward you with discounted premiums if you are able to medically prove you quit smoking within 1-2 years of purchasing coverage. Others reduce rates if you complete smoking cessation programs. These incentives motivate positive lifestyle changes.

Flexible Underwriting – Seek insurers that look beyond blanket smoker classifications to evaluate your specific tobacco use habits and health factors. This provides opportunities to qualify for discounted non-smoker or preferred rates.

Premium Adjustment Potential – A benefit of some policies is they allow you to renegotiate your rate later on if you meet non-smoker health criteria down the road. This flexibility helps secure savings if you eventually quit smoking.

Term Length Customization – Look for term life policies that offer broader term length options. The ability to fine tune your coverage duration (e.g 10-40 years) allows creating a personalized fit.

Thoughtfully evaluating these factors will help identify the most suitable and affordable life insurance policy for smokers.

Case Study: Comparing Sample Smoker Policies

To make the search process more concrete, let’s compare sample policy quotes for Sarah, a 45-year-old smoker from Ontario seeking $500,000 in term life insurance coverage.

Using a quoting engine, we retrieved sample premiums from top insurers. Here is how the results compare:

Monthly Premium Quotes for $500,000 Coverage

Based on the premium comparison, Industrial Alliance emerges as the clear winner for offering Sarah the most affordable coverage rate due to their highly competitive smoker premiums.

Their policy also provides the flexibility to select any term length between 10 and 40 years and potentially qualify for discounted non-smoker rates by quitting smoking during the first 2 policy years.

This case illustrates the importance of shopping quotes around rather than going with the first insurer you find. As a smoker, the differences in policy costs can be substantial, so taking the time to make cost comparisons ends up saving you big.

Finding The Best Life Insurance Providers for Smokers

While shopping for smoker life insurance may require some additional research, finding affordable coverage is absolutely attainable. The key is comparing options from multiple highly rated insurers to identify the most competitively priced policies.

Based on reputation and smoker-friendly features, excellent insurers to evaluate include:

• Industrial Alliance – For the lowest absolute rates nationwide
• Foresters – If you are determined to quit and want incentives
• Sun Life – For accommodation of non-cigarette tobacco use
• RBC Life – If you are a borderline or occasional smoker

Collaborating with an independent life insurance broker who can quote rates from a wide range of providers is also recommended. An experienced broker will have in-depth knowledge of insurers with smoker-friendly underwriting and can simplify the comparison process.

The right life insurance partner will offer affordable premiums, flexibility to improve your rates by quitting, and lenient underwriting of non-standard tobacco use. Taking the time to perform due diligence as a smoker will pay dividends by saving you money both now and in the long run.

The Bottom Line

While shopping for life insurance coverage poses some additional challenges as a smoker, finding an affordable policy that protects your loved ones is certainly possible. Keep the following key points in mind:

• There are several highly reputable Canadian life insurers with smoker-friendly underwriting practices that offer more affordable premiums.
• Comparison shopping quotes across 3-5 top providers is crucial to identify the lowest pricing. Don’t settle on just one insurer without checking the competition.
• Policies that incentivize you to quit smoking or offer improved rates for non-tobacco use provide significant long-term value.
• Disclose your smoking habits honestly upfront when applying. Attempting to hide tobacco use often backfires down the road.
• An experienced independent broker simplifies the process by providing access to quotes from a broad range of insurers.

Despite the challenges, with some diligence smokers can secure affordable life insurance policies tailored for their needs and budget. The companies profiled in this guide offer a great starting point to unlocking coverage.

To easily compare personalized quotes from top-rated insurers that welcome smokers, visit Life Buzz. Our independent brokers have access to the best life insurance for smokers that provide exceptional value. Get matched with your best option by answering a few quick questions today!

Frequently Asked Questions (FAQs) about best life insurance for smokers