Is Vaping Considered a Tobacco Product for Insurance?

Vaping has become a common activity. However, the insurance industry generally approaches vaping with a cautious perspective. While the public might differentiate between vaping and smoking, insurers typically evaluate them with similar considerations due to health uncertainties. This article clarifies how vaping is treated within the insurance industry and its implications for various policies.

Vaping and Insurance Classifications

Vaping involves using electronic devices, often called e-cigarettes, to inhale vaporized liquids that may contain nicotine or other substances. Insurers are concerned about vaping primarily due to the presence of nicotine, an addictive chemical, and the ongoing uncertainty surrounding its long-term health effects. The vapor itself can contain various chemicals, some of which may be harmful.

For underwriting purposes, many insurance companies classify individuals who vape similarly to traditional tobacco users. Most vape liquids contain nicotine, and the long-term health impacts of inhaling vaporized substances are still under study. Insurers often consider any nicotine use as a risk factor, even if some argue vaping is less harmful than smoking.

The U.S. Food & Drug Administration (FDA) considers e-cigarettes as tobacco products. This influences how they are regulated and how insurers view them. Even if a person uses e-cigarettes to quit smoking, the presence of nicotine usually leads to a “smoker” or “tobacco user” classification. The general industry trend is to categorize vaping as a factor that increases perceived health risk.

How Vaping Affects Insurance Premiums

Being classified as a “smoker” or “tobacco user” due to vaping has a substantial financial impact on insurance premiums. This is particularly true for life and disability insurance, where health risk primarily determines cost. Insurance companies utilize “risk classes” or “rate classes” to determine premiums, such as Preferred Plus Non-Smoker, Preferred Non-Smoker, Standard Non-Smoker, Preferred Smoker, and Standard Smoker.

Individuals who vape fall into the “smoker” or “tobacco user” rate classes. This classification can lead to significantly higher premiums compared to non-smoker rates, often two to three times more for similar coverage. For instance, a 30-year-old male vaper might pay approximately $81 per month for a $500,000, 20-year term life insurance policy, whereas a non-smoker would pay substantially less.

Insurers justify these higher premiums based on perceived higher mortality and morbidity risks associated with nicotine use and the unknown long-term health consequences of vaping. While some insurers might offer “vaper-friendly” rates, these are less common, and most of the market applies tobacco rates. The increased cost reflects the insurer’s assessment of a greater likelihood of future health claims or reduced life expectancy.

Underwriting Considerations for Vapers

The underwriting process for individuals who vape involves an assessment of their habits and health. Insurers ask specific questions on the application about vaping frequency and duration, the type of substance vaped (e.g., nicotine, non-nicotine, THC), and any related medical history, particularly concerning respiratory or cardiovascular health. Other lifestyle factors that could influence risk are also considered.

Honest disclosure during the application process is crucial. Misrepresenting vaping status can have severe consequences, including the denial of future claims or policy cancellation. Insurers verify vaping status through methods like medical examinations, blood and urine tests that detect nicotine and its byproduct, cotinine, which can remain in the system for several days to weeks.

If an applicant quits vaping, they may eventually qualify for non-smoker rates, but a waiting period is required. Most insurers require an applicant to be free of nicotine products for a “quit period” of 12 months, though some extend this to 24 months or longer. After this period, individuals can request a rate reconsideration or reapply for coverage, often involving another medical exam to confirm nicotine-free status.