How does smoking generally affect life insurance premiums?

Smokers generally pay higher premiums due to increased health risks associated with smoking. Insurance companies assess the likelihood of claims based on various risk factors, and smoking is a significant factor that raises the risk of developing serious health conditions, including heart disease, lung cancer, and respiratory problems. As a result, insurers categorize smokers as a higher-risk group, which leads them to charge higher premiums compared to non-smokers. This practice is designed to account for the anticipated higher medical costs and the greater likelihood that smokers may require more health-related claims.

In contrast, non-smokers typically receive lower premiums as they are considered to have a healthier lifestyle and a lower risk of smoking-related illnesses. The differential in premium prices reflects the insurance model of balancing risk and ensuring that premium revenues cover potential claims.