New study reveals Canadian smokers face rising costs, paying double for life insurance compared to non-smokers
Canadian households spent an average of $551 on tobacco products and smokers' supplies in 2021, mainly on cigarettes.
This spending closely parallels the $598 average household expenditure on public transportation, highlighting the significant financial burden cigarettes represent.
However, smoking’s health impact is far more severe, with lung cancer continuing to be the leading cause of cancer death in Canada. In 2021 alone, approximately 21,000 Canadians were expected to die from lung cancer.
To better understand shifting smoking trends, MyChoice, an Insurtech company in Canada, analyzed data from Statistics Canada’s annual community health survey.
This study examined changes in cigarette smoking rates across the country, comparing trends from 2019 to 2022 with those from 2015 to 2018.
MyChoice also evaluated differences in life insurance premiums between smokers and non-smokers using its database of life insurance quotes, illustrating the financial implications of smoking on life insurance costs.
The results reveal a significant drop in smoking rates across Canada since COVID-19. Nationally, the number of cigarette smokers declined by 18.79 percent between 2019 and 2022, compared to a smaller decline of 7.81 percent from 2015 to 2018.
MyChoice noted that older adults aged 65 and over displayed a unique pattern, with smoking rates in this demographic increasing by 9.75 percent from 2019 to 2022, following a 10.09 percent rise between 2015 and 2018.
Younger adults aged 20 to 24, however, demonstrated a rising interest in vaping. In 2022, 20 percent of this age group reported vaping at least once in the previous 30 days, up from 15 percent in 2019, 13 percent in 2020, and 17 percent in 2021.
The study further highlights that smoking rate reductions vary significantly by province. Alberta saw the most substantial decline in smoking rates, with a 24.17 percent decrease from 2019 to 2022, while New Brunswick experienced a smaller drop of 14.42 percent.
Nationally, Canada’s smoking rate fell by 18.79 percent over the same period. Other notable provincial reductions include Manitoba at 18.89 percent, Ontario at 18.86 percent, and Quebec at 20.98 percent.
Provinces such as British Columbia and Nova Scotia recorded smaller declines, at 13.74 percent and 13.61 percent, respectively.
MyChoice suggested that the disparity across provinces may indicate a need for targeted public health interventions to sustain and amplify these positive trends.
Beyond the direct health implications, smoking also has a substantial financial impact on life insurance premiums.
MyChoice’s data showed that smokers face significantly higher premiums due to their elevated health risks, including heart disease, stroke, and various cancers.
For instance, male smokers at age 20 pay 85 percent more for life insurance than non-smokers of the same age, while female smokers pay approximately 51 percent more.
These differences become more pronounced with age; by age 40, male smokers face premiums that are 149 percent higher, while female smokers see premiums about 140 percent higher.
MyChoice found that, over a 20-year term, smokers on average pay twice as much as non-smokers for life insurance, with potential savings of $29,599 if they quit.
Matt Roberts, COO of MyChoice.ca, emphasized that smoking places a “significant financial burden” on individuals.
While acknowledging the well-known health risks, Roberts pointed out that smokers face both higher medical expenses and life insurance premiums. He highlighted the potential for “enormous savings” in health and finances by quitting smoking.
