Life Insurance: Quit smoking to save cash
Life insurance: Stop smoking, save cash
Friday, 29 Feb 2008 12:52
Quitting smoking could save money not just on cigarettes, but also on life insurance.
March 12th marks the 25th annual No Smoking Day, which this year is calling on smokers to join the 'The Great No Smoking Day Challenge'.
Beyond the massive health benefits of giving up smoking, your finances can also be boosted.
After a year of not smoking, life insurance companies start to class you as a non-smoker, and being a non-smoker can result in premiums of life cover and critical illness cover being 50 per cent lower.
"'Do you smoke?' is one of the first questions that an insurer will ask a new client, as a smoker will pay considerably higher premiums than a non-smoker," said Matt Morris, policy adviser at life insurance specialist Lifesearch.
"To be classified as a non-smoker by an insurance company you must have quit smoking for at least 12 months. At that point, you should speak to an adviser to see if they can rebroke a new policy for you at a cheaper premium.
"A cheaper premium is not certain, as it also depends on age and health, but there is a very good chance that the premium will fall."
The number of UK smokers is expected to fall in the coming months following the smoking ban in England introduced in July – following the example set in New York and Scotland.
Smokers can sign up to the
'The Great No Smoking Day Challenge' here.
Lifesearch: Life Insurance from being a non-smoker
| | Sex | Smoker | Non-Smoker | Saving over term |
| Age 30 | Male | Aegon £12.96 | Aegon £7.82 | £1,850.40 |
| Age 30 | Female | Aegon £10.50 | Legal & General £6.60 | £1,404 |
| Age 40 | Male | Aegon £31.09 | Aegon £15.69 | £5,544 |
| Age 40 | Female | Aegon £24.98 | Aegon £12.61 | £4,453.20 |