What factor contributes to higher premiums for smokers compared to non-smokers in life insurance?

Smokers are considered to be at a higher risk for health complications, and this significantly influences their life insurance premiums. Insurance companies assess risk based on the likelihood of policyholders developing health issues or facing premature death. Smoking is closely associated with a number of serious health conditions, including heart disease, cancer, and respiratory illnesses. As a result, individuals who smoke generally have a shorter life expectancy compared to non-smokers.

This increased risk directly impacts the premiums that smokers pay for life insurance. Insurers need to account for the higher likelihood of claims being made by this group, which leads to increased premiums. By charging higher rates for smokers, insurance companies aim to balance the risk they undertake when providing coverage. Therefore, the higher premiums smokers experience are a reflection of the underlying health risks associated with smoking.