Cigar smoking is an expensive habit, and we don't mean the cost of premium cigars. Based on medical evidence, life insurers judge cigar smoking to be a habit that lowers life expectancy. So, if you often smoke cigars, cigarettes or a pipe, or chew tobacco — even if you're otherwise healthy — you're going to be placed in a smoker risk category and pay more for your life insurance policy.

If you think cigar smokers shouldn't be grouped with cigarette smokers, consider this: It is not unusual for some premium cigars to contain the tobacco equivalent of an entire pack of cigarettes, according to the U.S. Department of Health and Human Services (HHS).

And that leads to major health problems. The HHS says, "Scientific evidence has shown that cancers of the oral cavity (lip, tongue, mouth, and throat), larynx, lung and esophagus are associated with cigar smoking. Furthermore, evidence strongly suggests a link between cigar smoking and cancer of the pancreas. In addition, daily cigar smokers, particularly those who inhale, are at increased risk for developing heart and lung disease."

But what if you occasionally enjoy a cigar at a wedding but don't consider yourself to be a smoker? Many life insurers will allow the "celebratory" or "occasional" cigar smoker to still qualify for non-smoking rates. Insurers generally define "occasional" as smoking 12 cigars or less per year. Of course, the urine sample you provide for your life insurance exam must be nicotine-free, too.

For example, New York Life differentiates between the regular and occasional cigar smoker based on answers given on the life insurance application regarding frequency of use. If you're a regular cigar smoker, you'll be grouped in with all the other smokers at the higher rates. At Genworth, only those who smoke one cigar or less per year will be given nonsmoking rates.

Most life insurers will put occasional cigar smokers into a "nonsmoking standard" or perhaps even "nonsmoking preferred" rate class, according to Kevin Coughlin, brokerage sales consultant at Target Insurance Services, which helps other agents find life insurance for buyers with medical problems and other high-risk factors. You won't be able to qualify for the absolute best "super preferred" rates. For an explanation of classifications, see How life insurers view you: Underwriting categories.

Standing out in the industry is Prudential, which will bestow a "nonsmoking standard plus" rate (that's a rate between preferred and standard) on regular cigar smokers, pipe smokers and tobacco chewers. It's "a hugely good deal," says Coughlin.

For some insurers, a policy declination based on cigars may depend on policy type, says Coughlin. For example, some insurers won't take cigar smokers for term life policies but will offer them universal policies. With term life rates so low, they can't afford the possible risk.