Actuarial Risk Classifications: How Gender and Smoking Status Affect Premiums

The premium you pay for Permanent Life Insurance is fundamentally tied to the statistical probability of the insurance company paying a claim. This probability is formalized by actuarial risk classifications, primarily based on gender and smoking status.

Gender-Based Pricing

Statistically, women have a longer average life expectancy than men. Consequently, women generally pay significantly **lower premiums** than men of the same age and health rating, as the premium payments are expected to be collected over a longer period, deferring the death benefit payout.

Smoking Status Penalty

Smokers face a substantial increase in premium (often 200% to 300% of the non-smoker rate). This “smoker penalty” applies to both cigarettes and, often, cigars or chewing tobacco, depending on the frequency and policy rules. Because Whole Life premiums are fixed, this higher rate locks in a much greater long-term cost for the smoker.

Disclaimer: This content is for informational purposes only and is not financial or legal advice. Be truthful about your smoking status; misrepresenting this fact can void the policy during the contestability period.