What kind of individuals can life insurance companies discriminate against in policy rates?

Life insurance companies can differentiate policy rates based on specific risk factors, which include lifestyle choices such as smoking. Smokers are considered higher risk due to the associated health problems that can arise from tobacco use, which can lead to a higher likelihood of significant health issues or premature death. Therefore, companies commonly charge higher premiums for life insurance policies for individuals who smoke compared to non-smokers to account for this increased risk.

While insurers may also consider other factors like pre-existing conditions, age, and overall health, the ability to adjust rates based on smoking status is well established within the industry. This practice follows guidelines and regulations allowing insurers to assess risk related to behaviors that can directly influence life expectancy.