Life Insurance for Smokers in Australia: What You Need to Know

Why Smoker Life Insurance Costs More

Australian insurers classify smoking as a major health risk. Smoking remains one of the leading causes of preventable death in Australia, responsible for around 20,500 deaths each year (about 13% of all deaths nationwide). The habit is linked to cancers, respiratory disease, and cardiovascular illness — all of which increase claims risk for insurers.

Because of this, life insurers in Australia charge higher premiums for smokers compared to non-smokers.

What Counts as a “Smoker” in Australia?

For life insurance purposes, insurers usually define a smoker as anyone who has used tobacco or nicotine products in the past 12 months. This can include:

• Cigarettes

• Cigars and pipes

• Vaping and e-cigarettes

• Chewing tobacco or snuff

• Sometimes nicotine replacement products (patches, gum) — depends on the insurer.

Even occasional or social smoking often counts. If you’ve smoked even one cigarette in the past year, you’ll usually be classed as a smoker.

How Much More Do Smokers Pay in Australia?

Premiums for smokers can be 40% to 100% higher than for non-smokers, depending on age and cover amount.

Example Premium Comparisons (Australia, 2025 averages)

• Male, 40 years old, $500,000 cover, 20-year term

  • Non-smoker: ~$40–$50 per month

  • Smoker: ~$140–$180 per month

  • ≈ 3–4× higher

• Female, 35 years old, $500,000 cover, 20-year term

  • Non-smoker: ~$30–$40 per month

  • Smoker: ~$90–$120 per month

  • ≈ 3× higher

  
  

(Source: Canstar Life Insurance Premium Comparison 2024)

How Quitting Affects Your Life Insurance

Many Australians search: “If I quit smoking, when do I get non-smoker rates?”

Most insurers require you to be completely nicotine-free for at least 12 months before you can be reclassified as a non-smoker. At that point, you may need to undergo updated medical checks, but your premiums could drop by 50% or more.

Types of Life Insurance Available to Smokers in Australia

1. Term Life Insurance – The most common, covering you for a set period (e.g. 20 or 30 years). Premiums are higher for smokers, but still the most affordable option.

2. TPD Insurance (Total & Permanent Disability) – Can be bundled with life cover; premiums for smokers are also higher.

3. Trauma / Critical Illness Insurance – Covers illnesses like cancer, stroke, heart attack. Smokers face higher risks and higher costs.

4. Income Protection – Protects your earnings if you can’t work due to illness/injury. Smoking pushes premiums up here too.

5. No Medical / Simplified Cover – Available from some direct insurers; easier to apply for, but premiums are very high.

   
   

Tips for Smokers Seeking Life Insurance in Australia

• Be Honest: Non-disclosure is a common reason claims are denied. Even one cigarette counts.

• Shop Around: Different insurers assess risk differently. Comparing policies can save hundreds annually.

• Consider Quitting: Not only for your health — premiums can reduce dramatically after 12–24 months smoke-free.

• Bundle Cover: Sometimes combining life, TPD, and income protection policies can reduce total costs.

• Review Annually: Your health and smoker status can change. Updating your insurer could mean big savings.

Key Stats on Smoking in Australia

• Around 2.1 million Australians smoke daily (ABS, 2023).

• 13% of deaths in Australia are linked to smoking (AIHW, 2022).

• Life expectancy for smokers in Australia is on average 10 years shorter than for non-smokers (Cancer Council Australia).

• Quitting before age 40 reduces the risk of dying from smoking-related disease by about 90% (Cancer Council).

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Common FAQs

Q: Can I get life insurance if I smoke? Yes — every major insurer in Australia offers cover for smokers, though premiums are higher.

Q: What if I only smoke occasionally? You’ll usually still be considered a smoker unless you’ve been nicotine-free for 12 months.

Q: Will vaping affect my premiums? Yes — most insurers classify vaping the same as smoking.

Q: Can I change my policy if I quit? Yes. After 12–24 months smoke-free, you can often apply for non-smoker rates.

Bottom Line: In Australia, smokers can still get life insurance, but it costs more — often three to four times higher than non-smokers. The good news? Quitting for 12 months can cut your premiums significantly.

Life Insurance for Smokers