Quit Smoking for Cheaper Insurance

Article published on 30th June 2008

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In Telegraph Online today (Monday, 30/06/2008) there is an article discussing the affects of smoking on the cost of life insurance premiums and critical illness insurance premiums (read the full article here).

The article discusses how in the year (to the day this very Tuesday), since smoking was banned in enclosed public spaces, around 151,000 people have given up smoking, which is not only a generally 'good thing' for issues of personal and public health, but also in financial matters as well.

In a nutshell, because of all of the well documented health problems associated with smoking, smokers are deemed as higher risks by insurance providers when it comes to life insurance, critical illness insurance and even health insurance. To offset this risk, insurance providers charge 'smokers rates' to those with a tobacco habit, which inevitably is higher than 'normal' rates in terms of premium costs. So if a smoker quits the habit he or she will almost certainly be able to get cheaper insurance, providing they haven't developed any other illnesses or addictions in the meantime.

However, in order to be formally classed as a non-smoker and therefore eligible for cheaper insurance premiums, you would have be able to show that you have not been a smoker for 12 months at least. As your insurance provider will probably require various medical check-ups to confirm this, it really isn't something that can be faked. In order to be classed as a non-smoker and qualify for lower premiums, insurers insist on smokers having packed it in for a full year.

The telegraph article quotes Moneysupermarket figures that show that with Friends Provident, men aged 35 years are charged £16.93 per month for a £100,000 life insurance policy over 25 years period. A non-smoker of the same age, however, could get exactly the same amount of cover and over the same period of time but for only £9.79 per month. This is a saving of a cool £2,142 over the period of the policy.

Something similar applies to critical illness insurance policies that pay a tax-free sum of money upon diagnosis of certain specified illnesses, and income protection insurance, which makes sure that if you lose your income for any reason you will be able to get a proportion of it back while looking for new work or while recovering from your illness that prevents you from working. Smokers always get higher premiums where non-smokers get lesser rates.

So if you have given up smoking 12 months ago and more and if you are paying for any sort of personal protection insurance like those discussed above, go back to your insurer and tell them. The difference to your savings can be considerable over the course of your insurance contract.

In order to get an instant online life insurance quote for smokers, please visit our Life Insurance Quote page, or please feel free to contact one of our friendly advisors for financial advice on Life Insurance for smokers free on 0808 17 82 777.

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