In certain circles, cigarette smoking has become rather unfashionable. You can’t smoke at your work desk. You can’t smoke inside public buildings. You can’t smoke on planes (whoever thought that was a good idea?). What’s a smoker to do?
Well, in recent years some cigarette smokers have switched to a more socially acceptable form of nicotine delivery – vaping. Vape devices heat a liquid nicotine cartridge, creating an inhalable vapor. It is claimed that the level of these toxins is much lower than in regular cigarettes.
The FDA and Vaping
So, since these electronic alternatives are lower in toxins than traditional tobacco cigarettes, what are the vaping life insurance options these days? Unfortunately, there are no long-term studies on the health effects caused by using a vape device. Nor are there any uniform regulations over how they are manufactured.
As a matter of fact, as of August 8, 2016, the U.S. Food and Drug Administration (FDA), has ruled that e-cigarettes are now considered to be “tobacco products,” and subject to federal regulation. In short, the FDA has put regular cigarettes and e-cigarettes in the same boat.
Your Life Insurance Options
For most life insurance carriers, you’ll find that the required medical exam to qualify for a policy can detect nicotine in your urine. This will most likely put you in the same boat as traditional cigarette smokers. Which means that the best non-smoker rate classes will probably not be in the cards if you’re vaping.
However, while the majority of insurance carriers consider vaping no different than smoking, a life insurance agent who is well-versed in underwriting guidelines will know there’s at least one major life insurance company that offers “Non-Smoker” rates for unlimited vaping, cigar use, or chewing tobacco as long as no cigarettes have been smoked in the last 12 months. Want to know which one? Give us a call, any time!
So until long-term health studies prove or disprove that e-cigarettes and vapes are less harmful than traditional cigarettes, the best rates you’ll be offered from most life insurance companies if you’re a “vaper” will be the “Preferred Smokers” rate which, is over FOUR times higher than the best-preferred non-smoker rate class. Of course, that might change down the road. Who knows?
What we do know is that vaping has become increasingly popular. So while you probably won’t save big bucks on your life insurance anytime soon look on the bright side – you’ll no longer smell like an ashtray.
Now that you’re clear on the facts, take our nifty calculator for a spin. Once you’ve nailed down the coverage you need, give us a call. We’re old school so you’ll have to speak with a real person, but we’re guessing that’s the type of service you’d expect.
Nifty Life Insurance Calculator
Our Life Insurance Calculator can help give you a rough idea of how much coverage you’ll need to make sure your family is financially protected when you die.
Annual income before tax: $Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.
% of income needed by dependents: %Because you’ll be gone, presumably they won’t need as much as you’re currently earning. Typically, 80% of your current income is a good place to start.
Your Age: yearsThe younger you are, the more years of your income your family stands to lose when you die.
Number of years benefits are needed:If you died tomorrow, how many years of income do you want to provide for your family?
Annual inflation rate (estimate): %Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace. Historically, inflation has averaged between 2% and 4%.
Annual interest rate (estimate): %This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.
So what’s next? Call us at 800-442-9899 and let’s chat about the types of coverage that may make the most sense for you.
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