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Term Life Insurance Information On Specialized Policies

Term Life Insurance For Smokers And Term Life insurance For Children

By Mike Heuer


Understanding some basic term life insurance information can help people who smoke or who have children know how to find good policies or even if to buy them.

One of the best ways to get affordable term life insurance for smokers is to quit smoking, of course. But many life insurers will still charge the smokers’ rate for up to two years after quitting due to potential for latent illnesses that might flare up. People who use tobacco products, such as chewing tobacco, still can get the non-smokers’ rate, but some life insurers still will hold even casual tobacco use against people due to higher likelihoods of contracting cancer of the mouth or other illnesses.

For the most part, smokers will pay about double the rate for term life insurance than their non-smoking counterparts. Because smokers run a much higher risk of lung cancer, heart disease, respiratory illnesses and other potentially deadly conditions, some life insurers might refuse to provide even term life plans for smokers. At the very least, rates will be higher than term life for non-smokers.

But that does not mean affordable term life plans are not available. Finding a good deal on term life for people who smoke cigarettes and other tobacco products might take some hunting, but it can be done. Using independent insurance agents and brokers instead of going to specific life insurers can help smokers find more affordable term life plans, and using the Internet to make insurers compete to provide their best rates is another good way to shave costs on term life plans for smokers.

Buying term life insurance for children makes no sense for many life insurance experts. While a nominal amount of $5,000 in coverage to help pay possible funeral costs might make some sense, anything beyond that generally is a waste of money. Part of the reason is the vast majority of children are healthy and live a long time. The odds of a child truly needing a term life policy for financial protection is very small. Life insurer actuarial tables indicate only one in 3,000 children die before they turn 18.

Life insurers offer term life plans for children starting anywhere from two weeks old up to age 18. Policies never will be underwritten for newborns since there is a high mortality rate among children at birth when compared to the rest of society. But after surviving the first couple weeks, most any potential life-threatening conditions have been identified, making it very easy for life insurers to provide coverage for them using standard underwriting methods.

Term life insurance plans for children generally provide three levels of protection. The first is basic life insurance coverage that pays a death benefit. The second is a guarantee of future insurability later in life is term life coverage is maintained, but most children have no need of such benefits until they become adults. The final level of coverage is the ability to grow cash value with a whole life plan, but annuities and other investment vehicles provide a greater return on investment.

Being armed with basic term life insurance information can help smokers find better deals and stop parents from wasting cash on plans for their children.