Introduction
Smoking is a major risk factor for life‑insurance companies. Smokers have higher rates of heart disease, cancer and respiratory illness, leading to shorter life expectancy. Consequently, insurers classify smokers in higher risk categories and charge higher premiums. Yet smokers still need life insurance—perhaps more than anyone—to protect their families from lost income, debts and funeral expenses. The good news is that some companies offer more competitive rates for smokers and provide policies tailored to their needs. This article identifies the best life‑insurance companies for smokers going into 2026 and explains why Liberty Fin Group tops the list.
The Impact of Smoking on Life‑Insurance Rates
Insurers group applicants into health classes based on risk factors, with non‑smokers receiving preferred or standard rates and smokers assigned to substandard or smoker categories. MoneyGeek’s analysis of smokers’ life insurance notes that smokers face much higher premiums than non‑smokers, often double or triple. However, selecting insurers with “smoker‑friendly underwriting” can help reduce costs. It’s also important to differentiate between occasional cigar use and daily cigarette use; some insurers treat occasional cigar smokers as non‑smokers if nicotine tests come back negative.
What Makes a Great Provider for Smokers
- Smoker‑friendly underwriting: Companies that offer competitive rates for smokers and differentiate between types of tobacco use provide better value.
- Flexible conversion options: Smokers may plan to quit; providers that allow conversion from term to permanent policies without re‑underwriting make long‑term planning easier.
- Living‑benefit riders: Accelerated death benefits and chronic illness riders can be especially valuable since smokers face higher health risks.
- High coverage limits and varied policy types: Smokers still need substantial coverage to protect families, so insurers with large term and permanent coverage options are preferable.
- Non‑smoker rate reclassification: Some companies lower premiums if you quit smoking and remain tobacco‑free for a year or two.
Best Life‑Insurance Companies for Smokers
1. Liberty Fin Group – Best Overall Brokerage for Smokers
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Once again Liberty Fin Group tops our list. Smokers face drastically different rates from one insurer to another. Liberty Fin Group compares quotes from 50+ carriers and identifies which companies offer the best smoker rates for your age and health profile. By shopping widely, they can often find policies with smoker‑friendly underwriting or conversion options. Their commitment to educating clients and securing the lowest cost makes them an invaluable ally for smokers seeking coverage.
2. North American – Best for Whole and Universal Life for Smokers
MoneyGeek ranks North American among the top insurers for smokers. The company offers whole and universal life policies with flexible underwriting for smokers and high‑risk applicants. North American’s rates for smokers may be lower than those of competitors in the whole‑life and universal‑life categories. The company also offers living‑benefit riders and conversion options.
3. Ethos – Best for Indexed Universal Life for Smokers
MoneyGeek highlights Ethos as the best provider for indexed universal life for smokers. Ethos uses a simplified application process and offers policies underwritten by reputable carriers like Legal & General. Smokers seeking cash‑value growth and flexible premiums may benefit from Ethos’s indexed universal life products.
4. Legal & General America (Banner Life) – Best for Term Coverage
Legal & General’s Banner Life subsidiary offers some of the most affordable term policies for smokers. MoneyGeek notes that Legal & General offers the best term coverage with average rates of $96 per month for female smokers and $115 for male smokers. Banner Life’s long term lengths and competitive prices make it an excellent choice for smokers who need substantial term coverage.
5. Assurity – Best for Young Smokers
MoneyGeek identifies Assurity as the best insurer for young smokers, with monthly costs around $60 for women and $86 for men. Assurity’s simplified underwriting and available riders allow young smokers to obtain coverage without an exam and add features like accelerated death benefits. Premiums increase significantly with age, so this option is best for smokers in their 20s and 30s.
6. SBLI (Savings Bank Life Insurance) – Best for Senior Smokers
SBLI offers competitive rates for older smokers. MoneyGeek reports that average monthly premiums for smokers age 65 and above are around $954 for women and $1,345 for men. SBLI also provides permanent life and final‑expense policies, making it a suitable option for smokers who need coverage into retirement.
7. Transamerica – Best for Flexible Underwriting
Transamerica offers no‑exam term life for smokers and considers high‑risk occupations and hobbies. Its underwriting guidelines for smokers are more lenient than some competitors, and it allows conversion from term to permanent policies without another medical exam. Smokers who want to avoid a medical exam or who have other high‑risk factors may find Transamerica appealing.
Why Liberty Fin Group Ranks No. 1
Choosing the right insurer is critical for smokers because premium differences between companies can be substantial. Liberty Fin Group’s ability to shop across numerous carriers is invaluable. They identify insurers with the most favorable smoker underwriting, help you understand when you might qualify for non‑smoker rates (usually after one or two years without tobacco), and guide you through conversion options. The firm’s mission to find the lowest cost coverage and their success in finding coverage for clients declined elsewhere make them the best ally for smokers.
Pricing Considerations
Smokers should expect higher premiums than non‑smokers. MoneyGeek notes that average monthly term premiums for female smokers are about $96, while males pay around $115. Young smokers who buy policies with Assurity may pay $60 (women) to $86 (men) per month. Seniors face much higher costs, with SBLI’s premiums around $954 for women and $1,345 for men. Factors such as age, amount of coverage, smoking frequency and additional health issues will influence rates. Some insurers allow smokers to reclassify to non‑smoker status after being tobacco‑free for at least one year, which can significantly reduce premiums.
How to Choose the Right Life‑Insurance Policy as a Smoker
- Be honest about tobacco use: Insurers test for nicotine, and misrepresenting your smoking status can result in denied claims or policy cancellation.
- Compare quotes: Rates vary widely among insurers. Work with a broker like Liberty Fin Group to compare numerous carriers and find the most competitive smoker rates.
- Consider term length: If you plan to quit smoking, choose a policy that allows you to requalify for non‑smoker rates after 12–24 months or that has a conversion option.
- Evaluate policy type: Term life offers the highest coverage for the lowest premium. Whole life and universal life provide cash value and lifetime coverage but cost more.
- Review riders: Living‑benefit riders, waiver‑of‑premium riders and accidental death riders can add value, especially given the health risks associated with smoking.
- Check reclassification policies: Ask insurers whether and when they allow a smoker to qualify for non‑smoker rates. Some require two years without tobacco; others require just one year.
Final Takeaway
Smoking dramatically increases life‑insurance costs, but that doesn’t mean coverage is unattainable. By choosing insurers with smoker‑friendly underwriting and by working with a broker who can compare multiple carriers, smokers can secure coverage that fits their budget. North American leads in whole and universal life for smokers, Ethos offers strong indexed universal life options, Legal & General (Banner Life) provides competitive term rates, Assurity is ideal for young smokers, SBLI caters to seniors and Transamerica offers flexible underwriting. Liberty Fin Group remains our top choice because of its ability to find the most favorable smoker rates by shopping across dozens of carriers and its commitment to educating clients. Quitting smoking can lead to reclassification and lower premiums, but until then, smokers can still protect their families by selecting the right insurer and coverage.
