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.
What We Evaluate When Comparing Canadian Insurers for Smokers
Our evaluation process for the top life insurance companies for smokers is built on four key pillars:
Premium Competitiveness for Smokers (30%)
For smokers, the cost of insurance (COI) is often the primary concern. We conduct extensive analysis of premium data from dozens of Canadian insurers, comparing rates for standard “smoker” classifications across age, gender, and coverage amounts. Companies that consistently offer lower-than-average premiums for smokers receive the highest scores in this category.
Financial Strength and Customer Reputation (30%)
We examine brand trust and stability by reviewing credit ratings, complaint indices, and customer satisfaction surveys from organizations like AM Best. Companies with higher scores earn more points.
Flexibility and Leniency (20%)
We recognize that “smoker” is not a one-size-fits-all category. We dive into each insurer’s specific underwriting guidelines to assess their flexibility. Companies that take a holistic view of an applicant’s health, rather than just relying on a single “smoker” label, are rated higher.
Policy Features & Quitting Incentives (20% Weight)
A good policy for a smoker should offer more than just a death benefit; it should provide value and flexibility. We give high marks to insurers with robust programs that reward policyholders for quitting smoking. Policies that allow flexible term lengths or add valuable riders also scored highly.
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.
Most Canadian life insurers rate you as a “smoker” if you have used tobacco or nicotine in the last 12 months, regardless of the frequency or quantity. Very few make exceptions for extremely occasional or light use.
“Smoking” can include cigarettes, cigars/cigarillos, vaping/e-cigarettes, chewing tobacco, pipes, and even some smoking-cessation aids. These chemicals can elevate risks for numerous illnesses over time, including cancer, heart disease, stroke, lung disease and more.
Being designated as a smoker can increase your insurance premiums anywhere from 50% on the low end to over 300% higher than policyholders classified as non-tobacco users. The variance depends on the insurer and factors like your age and health conditions. Some insurers make distinctions:
- Cigarette Use: This is considered the highest risk and will always result in “smoker rates”.
- Cigars and Pipes: Occasional use (e.g., less than one per month) may qualify for non-smoker rates with certain lenient carriers.
- Vaping/E-Cigarettes: Most insurers now treat vaping the same as cigarette smoking. However, a few, like RBC, may offer slightly better rates than for traditional cigarettes.
- Cannabis Use: Insurers are becoming more lenient. Occasional use (e.g., 1-2 times per week) may qualify for non-smoker rates, while frequent use will lead to smoker rates or even a decline.
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.
Comparing the Top Insurers for Smokers in Canada
| Feature | Industrial Alliance (iA) | Foresters Financial | Sun Life | RBC Insurance |
| Best For | Overall affordability | Quitting incentives | Diverse tobacco use | Occasional smokers |
| Quitting Incentive | Can apply for non-smoker rates after 12 months smoke-free. | Non-smoker rates from day one, locked in if you quit within 2 years. | Can apply for non-smoker rates after 12 months smoke-free. | Can apply for non-smoker rates after 12 months smoke-free. |
| Cigar/Pipe Use | Lenient; may offer non-smoker rates for very occasional use. | Competitive rates, but generally still smoker class. | May offer non-smoker rates for fewer than 12 cigars per year. | May offer non-smoker rates for fewer than 12 cigars per year. |
| Cannabis Use | Lenient; occasional use may qualify for non-smoker rates. | Lenient underwriting available. | Considers it less risky than cigarettes; may offer discounts. | Occasional use may qualify for non-smoker rates. |
Industrial Alliance – Best Overall Life Insurer for Smokers
Industrial Alliance (iA) is our #1 recommendation among 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 20s to seniors in their 60s and 70s. Their highly affordable rates make iA policies very attractive to smokers seeking 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 its “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
| Age | iA Smoker Rate | Average Smoker Rate |
|---|---|---|
| 30 | $27 | $32 |
| 40 | $43 | $57 |
| 50 | $110 | $115 |
With premiums 15-20% below average, iA should be strongly considered when shopping for the 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 – Best For Quitting Incentives
Foresters Financial offers a unique and powerful proposition for smokers who are motivated to quit, the Quit Smoking Incentive Plan, on certain products. When you apply, Foresters gives you non-smoker rates for the first two years, even if you are a current smoker. If you successfully quit smoking for 12 consecutive months and can prove it medically within that two-year window, they will lock in those non-smoker rates for the rest of your policy’s term.
By incentivizing smokers to quit, Foresters helps their policyholders live a healthier lifestyle while saving them significantly on premium costs.
Beyond the quit-smoking incentive, underwriting outcomes can vary by product, health history, and the type of tobacco or cannabis use. If you smoke cigars, pipes, or use cannabis, ask for a written insurer definition and a quote illustration based on your exact usage pattern.
Here are Foresters’ smoker rates for key products:
Advantage Plus 10-Year Term Life
| Age | Foresters Smoker Rate | Average Smoker Rate | Coverage Amount |
|---|---|---|---|
| 30 | $31 | $33 | $250,000 |
| 40 | $57 | $60 | $250,000 |
| 50 | $118 | $125 | $250,000 |
Advantage Plus 20-Year Term Life
| Age | Foresters Smoker Rate | Average Smoker Rate | Coverage Amount |
|---|---|---|---|
| 30 | $41 | $43 | $500,000 |
| 40 | $92 | $96 | $500,000 |
| 50 | $198 | $205 | $500,000 |
Non-Participating Whole Life Insurance
| Age | Foresters Smoker Rate | Average Smoker Rate | Coverage Amount |
|---|---|---|---|
| 30 | $49 | $52 | $100,000 |
| 40 | $108 | $112 | $100,000 |
| 50 | $228 | $235 | $100,000 |
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 – 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.
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
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. (source: Sun Life Advisor Guide)
Here are sample monthly premiums for different coverage amounts:
$500,000 Term Life Coverage
| Age | Sun Life Smoker Rate | Average Smoker Rate |
|---|---|---|
| 30 | $54 | $57 |
| 40 | $88 | $92 |
| 50 | $165 | $172 |
| 60 | $398 | $412 |
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 – 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.
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
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 20-Year Renewable Term Life Policy
| Age | RBC Smoker Monthly Premium | Average Smoker Monthly Premium |
|---|---|---|
| 25 | $42 | $44 |
| 35 | $105 | $108 |
| 45 | $225 | $232 |
| 55 | $472 | $487 |
| 65 | $1,285 | $1,320 |
$100,000 Whole Life Insurance Policy
| Age | RBC Smoker Monthly Premium | Average Smoker Monthly Premium |
|---|---|---|
| 25 | $58 | $61 |
| 35 | $145 | $149 |
| 45 | $312 | $318 |
| 55 | $652 | $667 |
| 65 | $1,712 | $1,740 |
$50,000 Critical Illness Insurance Policy
| Age | RBC Smoker Monthly Premium | Average Smoker Monthly Premium |
|---|---|---|
| 25 | $27 | $28 |
| 35 | $67 | $69 |
| 45 | $143 | $147 |
| 55 | $297 | $305 |
With competitive premiums, lenient underwriting, and incentives to quit, RBC Life Insurance provides smoker-friendly coverage.
Full review: RBC Life Insurance
Case Study: Comparing Sample Smoker Policies
To make the search process more concrete, let’s compare sample policy quotes for Belle, 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
| Insurer | Sample Premium |
|---|---|
| Industrial Alliance | $72.50 |
| Foresters | $76.25 |
| Sun Life | $78.15 |
| RBC Life | $82.35 |
| Canada Life | $92.70 |
Based on the premium comparison, Industrial Alliance is the clear winner, offering Sarah the most affordable coverage rate due to its highly competitive smoker premiums.
Their policy also provides the flexibility to select a term length between 10 and 40 years and may qualify them for discounted non-smoker rates by quitting smoking during the first 2 policy years.
This case illustrates the importance of shopping around for quotes 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.
How to Get the Best Rates as a Smoker
While shopping for life insurance coverage as a smoker poses additional challenges, finding an affordable policy that protects your loved ones is certainly possible. Keep the following key points in mind:
- Work with an Independent Broker: A broker is not tied to one company. They can shop the market for you, compare quotes from all the top insurers (including those listed here), and identify which one will view your specific situation most favourably.
- Be Honest: Always disclose your smoking habits accurately on your application. Lying is considered fraud and can lead to a denied claim.
- Highlight Positive Health Factors: If you smoke but are otherwise healthy—you exercise, maintain a healthy weight, and have good blood pressure—make sure this is reflected in your application. It can help your case.
- Consider Quitting: If you’re serious about quitting, a policy from a company like Foresters Financial can provide a powerful financial incentive to help you succeed.
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
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, saving you money now and in the long run.
FAQs on Best Life Insurance for Smokers
What is the best life insurance for smokers under 30?
For younger smokers under age 30 seeking life insurance, term life policies offer an affordable option with coverage from 10-30 years. Insurers like Industrial Alliance and RBC Life have competitive term rates for smokers under 30.
Where can I find the best life insurance for smokers who are occasional smokers in Canada?
For occasional or social smokers, RBC Life and Foresters Financial offer more flexible underwriting, allowing non-smoker rates if you smoke less than five cigars a month or occasional cannabis use.
How to find the best life insurance for smokers who are heavy smokers in Canada?
Industrial Alliance and RBC Life emerge among the top picks for daily, heavy smokers based on their competitively priced premium rates across all age groups.
What company has the best life insurance for smokers over 50?
Once smokers reach age 50, Foresters Financial and Industrial Alliance stand out for their highly affordable premium rates for older smokers seeking life insurance after 50.
Which life insurance is best for smokers who have health issues?
For smokers with additional health conditions, Sun Life's flexible underwriting helps find more affordable coverage. Their accommodating practices provide options for higher risk smokers.
What is the best permanent life insurance for smokers?
For permanent life insurance, Foresters and Sun Life have competitive pricing on whole life and universal life policies designed for smokers requiring lifelong coverage.
Where to find the best life insurance for smokers who smoke cigarettes?
Industrial Alliance, RBC Life, and Foresters Financial offer some of the lowest rates tailored specifically for daily cigarette smokers rather than occasional tobacco users.
How can I find the best term life insurance for smokers?
Leading options for smoker term life insurance include Industrial Alliance for highly competitive rates as well as RBC Life and Foresters for more flexible underwriting of borderline risks.
What company provides the best life insurance for smokers who use tobacco?
iA Financial, RBC Life, and Foresters Financial have smoker-friendly underwriting, allowing non-smoker rates for occasional tobacco use like cigars, pipes, and cannabis.
Where to get the best life insurance for smokers who smoke marijuana?
Sun Life, RBC Life and iA Financial offer more accommodating underwriting, with potential for non-smoker ratings if you consume cannabis occasionally rather than daily.
How do you qualify for the best life insurance rates as an ex-smoker?
To qualify for non-smoker rates as an ex-smoker, Foresters Financial's Quit Smoking Incentive Plan provides the best opportunity by locking in non-smoker premiums if you quit within two years.
What life insurance companies offer the best-reformed smoker rates?
Foresters Financial, Sun Life, and RBC Life offer discounted non-tobacco user rates if you quit smoking for 12+ months and no longer smoke cigarettes or use nicotine.
Where can occasional smokers get the best life insurance rates for smokers?
For occasional smokers, Sun Life and RBC Life have flexible underwriting, allowing non-smoker rates if you smoke less than 12 cigars annually or have occasional cannabis use.
How soon after quitting smoking is best to apply for the best life insurance for smokers?
It's best to wait 12 months after quitting smoking before applying for a new policy to qualify for non-smoker rates immediately. Some insurers allow you to switch to non-smoker rates on an existing policy after 12 smoke-free months.
What insurance company has the best rates for smokers who vape or use e-cigs?
RBC Life Insurance offers significantly lower rates for e-cigarette and vape users compared to those who smoke traditional tobacco cigarettes, making them a top option.
Where can infrequent smokers find the best life insurance rates for smokers?
If you smoke less than five cigars per month, RBC Life will offer non-smoker rates, whereas most insurers would classify infrequent smokers as tobacco users with higher premiums.
How can occasional pipe smokers get the best life insurance pricing for smokers?
For pipe smokers, Foresters Financial offers competitive pricing compared to insurers who group all tobacco usage together. Occasional pipe use can still qualify for non-smoker rates.
What is the best term life insurance for younger smokers under 30?
Industrial Alliance and RBC Life offer very competitively priced term life insurance for younger smokers under age 30 looking for affordable temporary coverage.
Which insurer offers the best life insurance rates for occasional smokers in Canada?
For occasional smokers in Canada, Sun Life and RBC Life have more flexible underwriting, allowing non-tobacco user rates if you smoke infrequently or use cannabis moderately.
Where can heavy cigarette smokers find the best affordable life insurance?
Industrial Alliance and Foresters Financial offer some of the most competitively priced life insurance tailored for heavy daily cigarette smokers needing affordable premiums.
Who has the most competitive life insurance rates for older smokers over 50?
Once smokers reach age 50, Industrial Alliance and Foresters Financial emerge as top recommendations thanks to highly affordable premium rates for older smokers.
What life insurance company is best for smokers with additional health risks?
For higher-risk smokers with health issues, Sun Life is a great option because of its flexible underwriting and accommodating practices to help them find affordable coverage.