smoking

A friend of mine became a new father a few months back and called for a life insurance quote.  He's 37, in good health and a cigarette smoker.  Thirty years ago life insurance companies made a modest premium distinction between smokers and non-smokers.  Depending on one's age the difference then could have ranged between $30 - $70 a year between a smoker and non-smoker.  Today life insurance companies have been able to compile tons of actuarial evidence that points to a decidely shorter life span for smokers as opposed to non-smokers.  The cost of a $250,000, 20 year level premium policy for my smoker friend turned out to be $662.50 a year.  If he quits smoking for a year and continues to be a non-smoker the rate would drop to $237.50!  As if he needed to have another good reason to quit!