Tag Archives: insurance rates

Smokers Pay More For Their Life Insurance.

Everyone knows it, right? Smokers pay more money for their life insurance.  Does it really make that much of a difference? Of course it does. The likelihood of dying makes life insurance a pretty bad risk – and that likelihood is pretty high.  According to the CDC, Cigarette smoking is responsible for more than 480,000 deaths per year in the United States, including nearly 42,000 deaths resulting from secondhand smoke exposure. This is about one in five deaths annually, or 1,300 deaths every day. On average, smokers die 10 years earlier than nonsmokers. Those are pretty bad odds for an insurance company, thus the increased cost of life insurance. We’ll get to that in a bit, though.

This isn't the best way to quit.
This isn’t the best way to quit.

According to the American Cancer Society, about 40 million Americans still smoke cigarettes. Using tobacco is the largest cause of preventable premature death in the world – while the use of cigarettes has dropped (from 42% in 1965 to 16.8% in 2014), there are plenty of other ways to take in tobacco, and all are more dangerous than NOT taking in tobacco.

Quitting smoking has many benefits but can be hard. Research shows that using support groups and counseling can greatly improve your chances of quitting – and surprisingly that going cold turkey actually increases the “stickiness” of the quit. Most smokers quit several times for varying lengths of time before they actually cease all use, but according to healthcommunities.com, cold turkey seems to be the most successful method,

“ In a 2007 study published in Nicotine and Tobacco Research, researchers interviewed more than 8,000 adult smokers from four countries attempting to quit the cigarette habit. Participants were contacted at three separate intervals to see how their quitting methods had worked out. The researchers then compared success rates of smokers who were trying the cold turkey approach with those who were employing other methods.

The study found that 68.5 percent of the smokers made an attempt to quit using the cold turkey method, and of those, 22 percent succeeded after the second contact with researchers and 27 percent succeeded after the third contact. Among people using the cut down method, in which a person smokes successively fewer cigarettes before abstaining completely, only 12 percent and 16 percent, respectively, were successful.”

We human beings are snowflakes though, and cold turkey may not work for you – so try one of the many other cessation methods out there because it will do more than lower your life insurance rates; it will save you money, time, and give you many more years with your families.

So what does this have to do with Life Insurance? A smoker can pay substantially more premium for their policy than a non-smoker. Here is an example: a 40 year old male who is healthy and does not smoke can qualify for the best ratings Life Insurance companies have to offer. A  40 year old smoker can only qualify for a higher smokers rate. For example a $100,000 20 year term policy for the non-smoker is around $130.00 annually. However a 40 year old male smoker will pay around $271.00 annually for the same policy. That’s more than double the premium for the smoker. Over 20 years this adds up to $2,820.00 in additional premium that the smoker will have to pay for the same coverage. The bottom line is it pays not to smoke.

Here are some resources to help you stop smoking.

https://smokefree.gov/

http://www.cancer.org/healthy/stayawayfromtobacco/guidetoquittingsmoking/

https://quitday.org/quit-smoking/

 

 

Sources

http://www.healthcommunities.com/quit-smoking/quit-smoking-cold-turkey_bht.shtml

http://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/

 

Now is the time to shop your home and auto insurance if you live in North Texas.

If you are reading this article, odds are you live in the North Texas area. If you live in the North Texas area, you know that we have had significant storms in the area since December 26 of 2015. One tornado, two bad hail storms, and as of this writing, who knows what comes next.

 

A photo of hailstones from the first storm in the Dallas area in 2016.
A photo of hailstones from the first storm in the Dallas area in 2016.                      Photo credit: RC Graphic Designs.

So you are going to pay more for insurance. Everyone in the area is going to pay more for their home and auto insurance. All of the major companies have paid out enough in claims that they will have to raise rates (or as we say in the biz, “take rate”) over the next year. This isn’t great, obviously, but it presents an opportunity for you as a consumer. If you shop your home and auto insurance with an agency like us right now, you can lock in the lower rates that we can most likely find you, and you can lock them in for a year. That means that when your current company raises rates, it won’t affect you, and if/ when the new company rates go up, it won’t be until your renewal, which would be a year away if you buy today.

If you have not shopped your home and auto insurance for a long time, it will be harder to find a great deal if you wait until your current company raises your rates. Insurance companies don’t change rate mid policy, but they do at renewal. We represent so many different companies, it’s hard for us not to save someone coming from a Farmer’s or a State Farm insurance policy a good amount of money. Just yesterday we saved a former Farmer’s insurance client $4000 a year. That’s not the typical amount of savings, but it does happen.

Why not give us a call today and make sure you are in the right spot?  As insurance agents we are knowledgeable and honest. We would love it if you bought insurance from us, but we love it just as much when we find that you have a good deal and a good policy. It doesn’t happen often, but when it does, we always advise with the customer’s needs in mind – not our need to sell a policy.

Even if you didn’t make a claim, these storms will end up raising your rates. We can offer you a chance to pay less than you are now, AND insulate yourself against rising insurance rates in the Dallas area. Don’t you deserve to have the best insurance agent in Dallas? We think you do. Try us today by calling us at  877-717-4054.