What does vaping mean for your insurance?
The use of vapes has increased in recent years. We look at what it could mean for your life, income protection and health insurance.
05 Nov 2024
The use of vapes has increased in recent years. We look at what it could mean for your life, income protection and health insurance.
More and more Aussies are vaping. The proportion of people using e-cigarettes and vapes nearly tripled between 2019 (2.5%) and 2022-2023 (7.0%), according to the latest National Drug Strategy Household Survey.
Worryingly, there has also been a substantial increase in vaping among young people. The survey found that 21% of those aged 18 to 24 used vapes in 2022-2023 – up from 5.3% in 2019. For teens between 14 and 17, the use of e-cigarettes increased from 1.8% in 2019 to 9.7% in 2022-23.
Vapes are often touted as being less harmful than traditional cigarettes but that doesn’t mean they are safe. Vaping, however, doesn’t only have implications for your health – it could also affect your insurance. Here’s a guide to what it may mean for life cover, income protection and health insurance.
Vaping and life insurance
Vaping is generally treated the same way as smoking is by most life insurance providers. That means although you’ll still be able to get life cover, you can expect to pay significantly more than someone who doesn’t vape or smoke.
The table below shows the average monthly direct life insurance premiums for ‘smokers’ (which includes those who vape) and ‘non-smokers’. As you can see, a male in his 40s who doesn’t smoke or vape would pay $65.60 on average for life cover of $500,000. If he smoked or vaped, he would pay more than double for the same cover ($145.35). Over 12 months that adds up to $957 more.
Average monthly direct life insurance premiums by age
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| Age | Female | Male | ||
|---|---|---|---|---|
| Non-Smoker | Smoker | Non-Smoker | Smoker | |
| 20s | $29.23 | $52.52 | $44.38 | $77.29 |
| 30s | $30.01 | $56.15 | $39.98 | $78.10 |
| 40s | $53.31 | $110.13 | $65.60 | $145.35 |
| Early 50s |
$107.12 | $230.21 | $140.52 | $317.74 |
| Late 50s |
$194.48 | $387.57 | $270.47 | $559.76 |
Source: www.canstar.com.au. Based on quotes obtained for Canstar’s 2024 Direct Life Insurance Star Ratings (April 2024). Based on a sum insured value of $500,000.
Vaping and income protection insurance
It’s the same scenario when it comes to income protection insurance. If you vape, you’ll be treated like a smoker which means your premiums are likely to be more expensive.
Just take a look at the table below to give you an idea of what the difference could be. A female in her 40s who works a white-collar job and doesn’t vape would pay $97.08 on average for income protection cover. If she vaped or smoked her insurance would cost her roughly an extra $35 a month – or $420 a year.
Average monthly direct income protection insurance premiums
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| Age | Gender | Smoking Status |
Light Blue Collar |
Medium Blue Collar |
Heavy Blue Collar |
Professional/ White Collar |
|---|---|---|---|---|---|---|
| 20s | Female | Non-smoker | $72.17 | $83.38 | $104.05 | $60.06 |
| Smoker | $99.08 | $114.55 | $146.33 | $81.85 | ||
| Male | Non-smoker | $54.02 | $61.65 | $82.31 | $45.10 | |
| Smoker | $75.79 | $87.03 | $119.50 | $62.74 | ||
| 30s | Female | Non-smoker | $77.37 | $92.61 | $116.30 | $63.64 |
| Smoker | $105.58 | $124.60 | $162.60 | $86.22 | ||
| Male | Non-smoker | $57.25 | $67.41 | $89.57 | $47.38 | |
| Smoker | $79.99 | $93.13 | $129.37 | $65.71 | ||
| 40s | Female | Non-smoker | $119.03 | $140.59 | $185.51 | $97.08 |
| Smoker | $163.86 | $194.77 | $262.54 | $132.37 | ||
| Male | Non-smoker | $79.80 | $94.61 | $128.88 | $65.29 | |
| Smoker | $113.28 | $135.41 | $190.43 | $91.78 | ||
| Early 50s |
Female | Non-smoker | $210.33 | $252.00 | $324.99 | $171.08 |
| Smoker | $289.97 | $352.42 | $461.84 | $233.53 | ||
| Male | Non-smoker | $140.57 | $168.98 | $226.02 | $114.93 | |
| Smoker | $199.62 | $243.46 | $334.35 | $161.59 | ||
| Late 50s |
Female | Non-smoker | $366.55 | $443.00 | $557.22 | $296.00 |
| Smoker | $501.22 | $608.39 | $787.96 | $399.93 | ||
| Male | Non-smoker | $257.35 | $315.00 | $424.61 | $207.64 | |
| Smoker | $351.67 | $434.88 | $603.04 | $279.39 |
Source: www.canstar.com.au. Based on products rated in Canstar’s 2024 Direct Income Protection Insurance Star Ratings (February 2024). Based on a $3,125 monthly benefit limit.
Vaping and health insurance
Things are a little different with health insurance as vaping will generally not affect your premiums. This may not always be the case, however, as discussions within the industry continue concerning whether or not future health insurance policies might adjust premiums for vapers.
What you should know
Here are a couple of things that are important to keep in mind when it comes to vaping and your life cover or income protection insurance:
- Make sure you tell your provider that you vape when taking out cover – even if you only vape occasionally. If you lie and the provider finds out, there’s a risk you could have your claim reduced or denied altogether.
- If you quit vaping for more than 12 months, it’s worth talking to your insurance provider. They may review your premiums and assess you as a ‘non-smoker’ which could save you money.
Cover image source: Depiction Images/Shutterstock.com
This article was reviewed by our Editor-in-Chief Nina Rinella before it was updated, as part of our fact-checking process.
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