Why Smoking Changes the Price So Much
Insurers classify anyone who has used tobacco or nicotine products (including vaping, in most current underwriting) within the past 12 months as a smoker for pricing purposes — and the statistical difference in life expectancy and health risk translates into a substantial premium loading across every product type.
How Much More You'll Pay
Smokers typically pay 38% to 58% more than non-smokers for equivalent cover, across life, TPD, trauma and income protection alike — a loading large enough that it's often worth quoting both the smoker and non-smoker rate to see the exact gap for your specific circumstances.
The 12-Month Reassessment Opportunity
If you quit smoking and remain tobacco and nicotine-free for 12 consecutive months, you can generally apply to be reclassified as a non-smoker, which reduces your premium going forward. Most insurers will require you to confirm this via a declaration, and some may request a cotinine (nicotine metabolite) test to verify it.
Vaping and Nicotine Replacement
Most Australian insurers now treat vaping and nicotine replacement products (patches, gum) the same as smoking for classification purposes, even though the health risk profile differs from combustible cigarettes — worth disclosing accurately regardless, since misrepresenting smoking status is one of the most common reasons a claim is later contested.
Why Honesty at Application Matters More Than the Premium Difference
Non-disclosure of smoking (or any other material fact) can void a policy entirely at claim time, years after the premium 'savings' from lying were spent — the cost of an honest smoker's premium is always lower than the cost of a declined claim.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, occupation and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.