Smokers could pay between €6,000 and €60,000 more for life insurance than non-smokers 1 month ago

Smokers could pay between €6,000 and €60,000 more for life insurance than non-smokers

“The figures speak for themselves - showing massive savings for non-smokers when compared with smokers."

A smoker could pay anywhere from €6,000 to €60,000 more than their non-smoking counterpart for life insurance, a new study has revealed.

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According to figures released today by Royal London, non-smokers benefit from a reduction in life insurance premiums, meaning there's significant money to be saved if you quit smoking.

Royal London said anyone who has successfully managed to quit since January 2020 or before could this year see their life insurance premiums reduced dramatically.

“When weighing up the advantages of quitting smoking, we generally think about the obvious health benefits and the cost savings to be gained from not purchasing cigarettes frequently – especially given that, from 2021, one packet is set to cost €14," Colette Houton, Underwriting and Claims Lead at Royal London, said.

"However, fewer people may immediately think of the significant cost benefit of quitting in terms of the impact it has on life cover premiums. As you might imagine, smokers pay more in premiums for life insurance than non-smokers, due to many damaging health effects, but people may not be aware of just how sizeable the difference can be between the premiums charged.”

Royal London Cost Analysis Level Term Assurance Life Cover

Specified Serious Illness Cover

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In order to be classified as a non-smoker for insurance purposes, you must not have used any tobacco products in the last 12 months and have no intention to do so in the future.

This includes the use of e-cigarettes and nicotine replacement products, such as patches or chewing gum.

The insurance provider may ask you to carry out a cotinine test to prove this, which involves screening a sample of saliva or urine for tobacco use.

“The figures speak for themselves - showing massive savings for non-smokers when compared with smokers," Houton said.

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"A smoker turning 35 on their next birthday will pay over €6,000 more in premiums than their non-smoking counterpart for €300,000 worth of Level Term Life Cover over a 25-year term.

"A smoker turning 45 on their next birthday can expect to pay over €68,300 more than a non-smoker during the course of a Specified Serious Illness policy for €300,000 over a 25-year term.

"Our experience is that while many people expect that smokers will pay more in premiums; they are surprised how much the cost savings can add up to over the lifetime of the cover.”