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ASK KIM
Ex-Smokers Can Get Lower Life Premiums
by Kimberly Lankford

I am paying a ton of money for my life insurance because I was a smoker when I bought my policy. I stopped smoking about a year ago. Is there any way to lower my rate?

You may be able to lower your premiums significantly by shopping for a new policy.

You have two things working in your favor: nonsmokers pay much less for life insurance than smokers do, and life insurance rates have dropped by about 3% to 5% per year over the last few years.

"If you're a smoker who quit a few years ago, you could save yourself a tremendous amount of money," says Hayes Ewing of InsWeb. Even though you might not qualify for a company's best rate until about five years since you've stopped smoking, some companies may offer you a lower rate even if you only stopped in the past 12 months. Smokers often pay double or triple the rates of nonsmokers, says Ewing.

Some companies may offer you a much better deal than others, so it's important to shop around. InsWeb is a great way to get quick and accurate quotes from well-known companies. AccuQuote is particularly helpful if you want personalized service (call them at 800-442-9899 if you have any medical conditions that might make it more complicated to qualify for a policy). And Quotesmith is a good resource because it lists each policy's underwriting criteria, explaining who qualifies for each price (including how long ago you had to stop smoking to get that rate).

It's also worthwhile to shop around again if you lost weight, dropped your cholesterol level or if it's been a few years since you've been treated for cancer or another major medical condition. You may get a much lower rate than you expect.