If you use tobacco or nicotine products, you can still secure life insurance coverage in Canada. However, smoking is one of the most significant risk factors used in underwriting, resulting in substantially higher premiums than those paid by non-smokers. This guide will detail the true cost difference, how insurers test for nicotine, which policy types work best, and the strategies to lower your rates.
Can You Get Life Insurance if You Smoke in Canada?
YES, absolutely. You won’t be denied coverage solely because you smoke. However, smoking increases your risk of heart disease, stroke, and cancer, which are conditions that raise insurers’ payout risk, which is why premiums for smokers could cost twice the non-smoker rates.
While premiums are substantially higher, most smokers in good health qualify for standard smoker rates. If you have additional health conditions (such as uncontrolled diabetes or high blood pressure), coverage remains available through simplified-issue or guaranteed-issue policies that don’t require a full medical exam.
What Counts as Smoking for Life Insurance in Canada?
Canadian insurers classify you as a smoker if you’ve used any tobacco/nicotine product in the past 12 months. This includes:
- Cigarettes and hand-rolled tobacco
- Cigars and cigarillos
- E-cigarettes and vaping devices (nicotine or tobacco-based)
- Chewing tobacco and snuff
- Nicotine patches and nicotine gum (used for cessation)
- Pipes
Key Exceptions and Flexibilities
There are limited exceptions that vary by insurer and product:
Cannabis (Marijuana): Using cannabis edibles, oils, or capsules typically does not result in a smoker classification. However, if you smoke or vape cannabis, you likely will be classified as a smoker, as insurers are concerned with the risks of inhalation, regardless of the substance. Frequent cannabis use, even if not smoked, may lead to a small rate increase with some insurers.
Occasional Cigars: Some insurers show flexibility here. Companies like Canada Life may offer non-smoker rates to individuals who smoke a very limited number of cigars, typically no more than 12 per year. You must disclose the exact frequency, and the insurer verifies this through medical underwriting. Daily or weekly cigar use triggers full smoker classification.
How Insurers Verify Your Smoking Status
During the application process, insurers verify smoking status through:
- Direct questions on the application form asking about tobacco use in the past 12 months
- Medical exams (required for most term policies over $250,000) that include blood and urine tests detecting nicotine exposure. In clinical testing, cotinine may be detectable for up to about 7 days after exposure.
- Medical records review where your doctor’s notes may reference smoking history or cessation attempts
Some insurers waive medical exams for simplified issue policies, relying instead on health questionnaires and prescription drug database checks.
Important Note: Cotinine testing is highly accurate. After around 2 weeks of abstinence, many people have cotinine levels comparable to non-users. Thus, do not lie about your smoking status. If insurers find evidence that you were a smoker when you applied, they can deny the entire death benefit or recalculate it. Honesty from the start is the only safe and effective strategy.
Types of Life Insurance Policies for Smokers in Canada
Life Insurance for Smokers can purchase most standard types of life insurance, but some policies are more optimal, given higher premiums. Standard policies well-suited for smokers include:
Term Life Insurance – Provides affordable pure death benefit protection for 10, 20 or 30 years. Pure protection policies like term insurance are economical for higher-risk groups like smokers.
Guaranteed Issue – For older smokers or those with health issues, guaranteed-issue life insurance offers simplified underwriting with no medical exam but low coverage amounts.
Group Life Insurance – Group or employee-sponsored group life insurance often has simplified underwriting and does not require lab tests or exams. This can provide cost-effective coverage for smokers.
Funeral Insurance – Small benefit funeral or final expense insurance ($10,000 or less) may be an option for higher-risk seniors to cover final costs. Minimal underwriting and no medical exams make this feasible.
Permanent Life Insurance – Whole life and universal life insurance offer lifetime coverage and a savings/investment component, but carry higher premiums. Smokers may benefit from a permanent life/term life combo plan.
The key is understanding your budget, timeline, and amount of coverage needed. Simplified issues and group policies make obtaining coverage more realistic for tobacco users.
How Much Does Life Insurance Cost for Smokers in Canada?
Smoker premiums vary based on age, coverage amount, policy term, and health status. Younger smokers face smaller absolute premium increases but still pay two or three times non-smoker rates. Older smokers see both larger percentage increases and higher absolute costs.
Sample Monthly Premiums: 20-Year Term, $300,000 Coverage
| Age | Male Smoker | Male Non-Smoker | Female Smoker | Female Non-Smoker |
|---|---|---|---|---|
| 30 | $58 | $31 | $40 | $23 |
| 40 | $139 | $45 | $89 | $35 |
| 50 | $380 | $136 | $215 | $86 |
| 60 | $891 | $399 | $522 | $283 |
Disclaimer: These are sample rates for illustrative purposes only, based on a healthy applicant in Ontario. Your actual premium will depend on your specific age, health, province, and the insurer you choose.
Strategies to Lower Premiums: Aim for “Preferred Smoker” Rates
Even as a smoker, you can secure a better deal if you are otherwise in excellent health. Some insurers offer a Preferred Smoker health class, which can reduce your premiums by 15-30% compared to a Standard Smoker. To qualify, you generally need:
- Excellent blood pressure and cholesterol levels
- A healthy Body Mass Index (BMI)
- No other chronic health conditions
- A clean driving record
Working with an independent broker is key to finding insurers, like Manulife and iA Financial Group (Industrial Alliance), that offer these preferred rates. Also consider other strategies to lower policy costs:
- Opt for Longer Terms – Choosing a 20 or 30-year term policy costs less per year than a 10-year policy with the same death benefit.
- Pay Annually vs. Monthly – Paying premiums annually rather than monthly saves on policy fees and can lower overall costs.
- Buy When You’re Younger – Life insurance rates rise as you age, so purchasing coverage in your 20s or 30s provides long-term savings.
- Comparison Shop – Get quotes from at least 5-10 different life insurers to find the lowest rates for your situation. Leverage online quote tools.
While costs remain elevated, using these tips carefully can help smokers obtain affordable coverage.
The Path to Non-Smoker Rates: How to Save After Quitting
The good news for smokers applying for life insurance is that quitting, even for a relatively short period, can substantially reduce your insurance rates. Non-smoker pricing is typically available after 12 consecutive months without tobacco, vaping, or nicotine replacement products. Longer smoke-free histories may improve overall health ratings, but the first key milestone many insurers use is the 12-month mark.
Always disclose any previous tobacco use if you’ve quit within the past five years. Lying about your non-smoker status could still jeopardize a policy. But do emphasize the duration since you quit smoking.
Some life insurance companies in Canada offer incentives to encourage quitting:
- Foresters Financial – Quit Smoking Incentive Plan: This plan lets you pay non-smoker rates for the first two years of your policy. If you successfully quit within that window and pass a nicotine test, the non-smoker rates become permanent. If not, your premiums adjust to the higher smoker rate in year three.
Not all insurers price smoker risk identically. Some offer better rates, more flexible underwriting, or smoker-friendly programs. Visit our article to find the best life insurance providers for smokers in Canada.
FAQs on Life Insurance for Smokers in Canada
Will quitting smoking help lower life insurance rates?
Yes, quitting smoking can dramatically reduce your life insurance premiums over time. Most insurers offer non-smoker rates after five years of abstention from tobacco. Even quitting for 1-3 years can result in notable rate drops. Always disclose if you recently quit smoking.
Can nicotine gum or vaping be considered as smoking for insurance rate purposes?
Any ingestion or use of nicotine products must be disclosed when applying for life insurance. This includes vaping, e-cigarettes, nicotine gum/patches, smokeless tobacco, cigars, etc. These will raise rates similarly to cigarette smoking, depending on frequency.
What if I only smoke occasionally?
Even one cigarette in the last 12 months means you must apply as a smoker. The only common exception is for very infrequent cigar use (e.g., less than one per month), which some insurers may allow at non-smoker rates.
Will I need a medical exam as a smoker?
For most traditional policies with coverage over $250,000, a medical exam is standard for everyone. However, smokers can opt for no-exam simplified issue policies, which offer faster approval but at a higher cost.
Does vaping count as smoking for life insurance?
Yes. All major Canadian insurers classify vaping with nicotine as smoking. Vaping cannabis will also typically lead to smoker rates due to the risks associated with inhalation.
The Bottom Line
While premiums are higher, life insurance remains accessible for smokers who use intelligent shopping strategies and comparison shops. Protecting the family is still affordable and possible. Use this guide to demystify the process and secure the best rates possible.
Article Sources:
Delve into the principles that guide our dedication to truthfulness, clarity, and editorial autonomy by exploring the Lifebuzz.ca Editorial Policy. This is the cornerstone of our esteemed status as the premier trusted source for life insurance information in Canada.