Smokers can save £3,000 on life insurance premiums by quitting
Quit to make life insurance £3,150 cheaper
Tuesday, 19 Jun 2007 13:25
Smokers can save £3,000 on life insurance premiums by kicking the habit.
That is according to new figures from comparison site Moneysupermarket.com, which show giving up can save more than just your health.
"The upcoming smoking ban has inspired 1.2 million smokers to say they intend to quit by July 1st, so if you're keen to give up, you should find plenty of support from others in the same position," said Emma Walker, head of life insurance at Moneysupermarket.
"The premium difference between a smoker and a non-smoker is vast and there are considerable savings to be made simply by shopping around for the cheapest deal to suit your circumstances."
Moneysupermarket points out a 25-year, £100,000 life insurance policy for a 35-year-old smoker costs £17.90 a month with Norwich Union, 79 per cent more than for a non-smoker. Over the 25-year course of the policy this would save you £2,370.
With Liverpool Victoria smokers pay more than twice as much as non-smokers and a person quitting can save £3,150 over the term of a life insurance policy.
But the benefits of quitting are not immediate - with insurers waiting to see if your attempt to stub out your habit is successful before offering you a discount.
"In order to be classed as a non-smoker and qualify for life-insurance premium savings, insurers insist on smokers having packed it in for a full year," said Ms Walker.
"Once smokers have given up for 12 months, they should go back to their insurer and ask for non-smoker rates, subject to tests to prove they have quit."