Smokers pay 50-100% more for life insurance. Here's exactly how much more you'll pay, when you qualify as non-smoker, and strategies to reduce your premiums.
Comprehensive premium breakdown by age, gender, and smoking status
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Let's cut straight to the numbers: if you smoke, you'll pay 50-100% more for life insurance compared to non-smokers. For a 35-year-old male seeking $1 million in coverage, that's the difference between paying $65/month and $130/month - an extra $780 per year, or $23,400 over a 30-year policy term.
Why such a significant difference? The statistics are stark (Source: Australian Institute of Health and Welfare):
Insurance is fundamentally about risk, and smoking is one of the highest-risk factors insurers assess. The premium difference reflects the statistical reality of smoking-related mortality.
But here's the good news: Life insurance is absolutely available for smokers. You won't be declined simply because you smoke. You'll just pay more - and this guide will show you exactly how much more, and what you can do about it.
The premium impact varies by age, coverage amount, and insurer. Here's what real quotes look like in 2026:
| Profile | Coverage | Non-Smoker | Smoker | Extra Cost |
|---|---|---|---|---|
| Male, 30 | $500,000 | $32/month | $58/month | +81% |
| Male, 30 | $1,000,000 | $55/month | $105/month | +91% |
| Female, 30 | $500,000 | $26/month | $48/month | +85% |
| Female, 30 | $1,000,000 | $45/month | $87/month | +93% |
| Male, 40 | $500,000 | $52/month | $98/month | +88% |
| Male, 40 | $1,000,000 | $95/month | $185/month | +95% |
| Female, 40 | $500,000 | $42/month | $78/month | +86% |
| Female, 40 | $1,000,000 | $76/month | $145/month | +91% |
| Male, 50 | $500,000 | $105/month | $210/month | +100% |
| Male, 50 | $1,000,000 | $195/month | $395/month | +103% |
Rates are indicative based on 2026 market averages. Individual quotes may vary by insurer and health factors.
The true cost becomes apparent when you look at total premiums paid over a policy's lifetime:
Example: 35-year-old male, $1 million cover, 30-year term
| Factor | Non-Smoker | Smoker | Difference |
|---|---|---|---|
| Monthly Premium | $65 | $130 | +$65/month |
| Annual Premium | $780 | $1,560 | +$780/year |
| 10-Year Total | $7,800 | $15,600 | +$7,800 |
| 20-Year Total | $15,600 | $31,200 | +$15,600 |
| 30-Year Total | $23,400 | $46,800 | +$23,400 |
The bottom line: Over a 30-year policy, a smoker pays an extra $23,400 for the same coverage. That's a significant financial incentive to quit.
Insurers have a broad definition of smoking that catches many people off guard. Here's what you need to know:
Any cigarette use, regardless of frequency, classifies you as a smoker. This includes:
Key point: There's no distinction between a pack-a-day smoker and someone who has "just a few" at parties. Both are classified as smokers.
This is the biggest surprise for many applicants. Vaping is classified as tobacco/nicotine use by all major Australian insurers.
It doesn't matter that vaping may be "less harmful" than traditional cigarettes. For insurance underwriting purposes:
Why? Insurers view vaping as a relatively new phenomenon without long-term mortality data. They also note that many vapers eventually return to cigarettes or use both products. Until more data is available, vaping is treated the same as smoking.
Even occasional cigar or pipe use classifies you as a smoker. This includes:
Social cigar smokers take note: Even one cigar in the past 12 months means smoker rates.
Cannabis use is treated differently depending on the insurer and how you use it:
Smoking cannabis:
Edibles or non-smoked cannabis:
Medical cannabis (prescribed):
Important: Cannabis laws are evolving in Australia. Always disclose your actual use truthfully - non-disclosure can void your policy.
If you're using nicotine patches, gum, or other NRT to quit smoking:
During quitting (first 12 months):
After 12 months tobacco-free:
Smoker rates vary significantly between insurers. Some are 30% cheaper than others for the same coverage. Compare quotes to find your best rate.
Get Your Free QuoteThe single most important thing smokers need to know about life insurance is the 12-month rule:
To qualify as a non-smoker, you must be completely tobacco and nicotine-free for at least 12 consecutive months.
Day 1: You smoke your last cigarette Months 1-11: You're still classified as a smoker for insurance purposes Month 12+: You can apply as a non-smoker (with most insurers)
Some insurers have specific requirements:
| Insurer Type | Tobacco-Free Requirement |
|---|---|
| Most mainstream insurers | 12 months |
| Some conservative insurers | 24 months |
| A few lenient insurers | As low as 6 months |
To reset the clock and start your 12 months, you must stop ALL of the following:
One slip-up resets the clock. If you quit for 10 months, have "just one cigarette" at a party, you're back to day one.
Generally, no. Most insurers require the full 12 months.
However, you have options:
Option 1: Wait and save
Option 2: Apply now, reclassify later
Option 3: Choose a lenient insurer
If you have an existing policy as a smoker and you've now quit for 12+ months:
Step 1: Contact your insurer (or your adviser)
Step 2: Request a "smoking status review" or "premium review"
Step 3: Provide evidence of your quit date:
Step 4: Insurer updates your classification
Step 5: New (lower) premiums apply going forward
Important notes:
Let's calculate the actual financial benefit of quitting smoking for your life insurance:
You: 35-year-old male Coverage needed: $1,000,000 Policy term: 30 years (until age 65)
Current smoker premiums: $130/month = $1,560/year
If you quit and reclassify after 12 months:
If you continue smoking:
Your savings from quitting: $22,620
| Age | Coverage | 20-Year Savings | 30-Year Savings |
|---|---|---|---|
| 30 | $500,000 | $6,240 | $9,360 |
| 30 | $1,000,000 | $12,000 | $18,000 |
| 35 | $500,000 | $7,920 | $11,880 |
| 35 | $1,000,000 | $15,600 | $23,400 |
| 40 | $500,000 | $11,040 | $16,560 |
| 40 | $1,000,000 | $21,600 | $32,400 |
| 45 | $500,000 | $14,400 | $21,600 |
| 45 | $1,000,000 | $28,800 | $43,200 |
The older you are and the more coverage you need, the more you save by quitting.
Life insurance savings are just part of the picture. Consider the total financial impact of quitting:
Cigarette costs saved (at $40/pack, 1 pack/day):
Health insurance savings:
Medical costs avoided:
Total 30-year financial benefit of quitting:
If you're not ready to quit (or haven't reached the 12-month mark yet), here are strategies to minimise your insurance costs:
Smoker premiums vary more between insurers than non-smoker premiums. One insurer might charge 80% more for smokers while another charges 100% more.
Always get quotes from at least 3-5 insurers before purchasing a policy.
Stepped premiums: Start lower but increase each year as you age Level premiums: Start higher but stay relatively constant
For smokers planning to quit within 1-2 years, stepped premiums might make sense:
Don't underinsure thinking "I'll get more coverage when I quit."
Here's why:
Better approach: Get adequate coverage now at smoker rates, then enjoy the premium reduction when you quit.
While you can't offset smoking entirely, improving other areas helps:
These won't eliminate the smoking loading, but they prevent additional loadings stacking on top.
If life insurance premiums are prohibitive, consider whether Income Protection Insurance might serve some of your needs:
Many Australians find a combination of adequate income protection plus moderate life insurance more affordable than maximum life insurance alone.
Our advisers specialise in finding the best rates for smokers. We know which insurers are most competitive and can help you plan for reclassification when you quit.
Book Free ConsultationIf the financial incentive has convinced you to quit, here's how to approach it strategically from an insurance perspective:
Choose a specific date and document it. This becomes your "12-month clock start date" for insurance purposes.
Tip: Tell your GP about your quit date. Having it in your medical records provides evidence when you apply for reclassification.
Successful quitting increases your chances of staying tobacco-free for the required 12 months:
Nicotine Replacement Therapy (NRT):
Prescription medications:
Quitline support:
Combination approach:
Month 1-6: Focus on staying quit. Don't think about insurance yet.
Month 6-9: Start researching insurers and comparing quotes. Know what rates you'll qualify for.
Month 9-11: If you have existing cover at smoker rates, contact your insurer about the reclassification process.
Month 12: Apply as non-smoker or request reclassification on existing policy.
Relapses are common - most successful quitters have multiple attempts before succeeding permanently.
For insurance purposes:
Don't give up. Each quit attempt increases your chances of eventual success. The financial benefits are worth persisting.
We must address this directly: Never lie about your smoking status on a life insurance application.
At application:
At claim time:
If discovered at application:
If discovered at claim:
Example scenario: John applied for $1 million life insurance as a non-smoker, saving $780/year. He smoked occasionally but didn't disclose it. After 8 years ($47,000 in premiums paid), John died of a heart attack. The insurer reviewed his medical records, found smoking-related notes from his GP, and denied the claim. John's family received nothing.
The premium savings from lying are never worth the risk. If you smoke, apply as a smoker, get coverage, and work toward reclassification the legitimate way.
Most Australian insurers require 12 consecutive months completely free of all tobacco and nicotine products (including vaping). Some conservative insurers require 24 months, while a few accept as little as 6 months. Your adviser can identify which insurers match your timeline.
Yes. All Australian life insurers classify vaping and e-cigarette use the same as traditional smoking. This applies whether you use nicotine or nicotine-free vape products. You'll pay smoker rates and need to be vape-free for 12 months to qualify as a non-smoker.
Yes, but it's complicated. If you smoke cannabis, you'll typically be classified as a smoker. Beyond the "smoker" classification, insurers may also apply additional loadings for drug use depending on frequency. Edible cannabis may not trigger smoker status but could still result in premium loadings. Always disclose your actual use - non-disclosure can void your policy.
No, it's not automatic. You need to proactively contact your insurer (or adviser) after being tobacco-free for 12 months to request a "smoking status review." You'll typically need to provide evidence (GP letter, signed declaration, possibly a cotinine test). The premium reduction applies from the review date forward - past premiums at smoker rates aren't refunded.
Yes. Any tobacco use, including occasional cigars (even just one on special occasions), classifies you as a smoker for insurance purposes. There's no distinction between daily cigarette smokers and occasional cigar smokers. The 12-month tobacco-free requirement applies to all tobacco products.
With most insurers, no - you need 12 months. However, some lenient insurers accept shorter quit periods (as low as 6 months). An adviser can identify which insurers offer this flexibility. Alternatively, you can apply now as a smoker and request reclassification after reaching 12 months tobacco-free.
Understanding how smoking affects your insurance is just one piece of the puzzle. You may also find these guides helpful:
If you have smoking-related health conditions, these resources may also be relevant:
Key takeaways:
The best time to get life insurance is when you're young and healthy. If you smoke, don't let that stop you from protecting your family. Get covered at smoker rates today, work toward quitting, and enjoy the premium savings when you reach that 12-month milestone.
General Advice Only
Authorised Representative Number: 1244847 | Australian Financial Services Licence: 246623