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Why are life insurance rates so much higher for smokers?

Why are smoker rates so much higher than non-smoker rates? (We are referring to any tobacco user as a 'smoker' for the sake of this article.)

Tobacco and cigarettes are bad for your health. This is no secret. Smoking affects your chance of dying prematurely. It is really this simple.

Life insurance companies know a smoker is likely to die sooner than a non-smoker and must charge a higher insurance rate for the same amount of insurance on an individual who is the same age, sex and body type.

Life insurance companies calculate the chance of dying based on groups of people with similar health concerns and consider the mortality rate of the group. Studies show that smokers, as a group, have a much higher mortality rate than people who don't smoke. If you smoke, you are likely to die sooner than if you don't smoke.

The insurance company will be collecting a smoker's life insurance premium for a shorter period of time and because of this, they will charge a higher rate.

If you are currently a smoker (or a tobacco user) and are quitting, you could reduce your life insurance premium.