Quitting smoking can pay off in more ways than one... as ex-smokers stand to save substantially on life cover.
Smokers can pay twice as much for life insurance than their non-smoking counterparts, according to figures released today by a leading protection specialist, though people may not be aware of just how sizeable the difference between the premium costs.
At this time of the year when people are challenging themselves to kick the habit as part of their new year’s resolutions, the cost comparison may be the encouragement they need to keep going.
Smoking in Ireland – The Statistics
The Healthy Ireland Survey 2018 results showed that smoking rates are the highest among the 25-34 years group. For people in this demographic the financial implication that being a smoker has on the cost of their life assurance will add up. A smoker who will turn 35 on their next birthday can expect to pay over €5,700 more than a non-smoker for €300,000 worth of Life cover over a 25 year term.
Another example; a smoker turning 45 on their next birthday will pay over €16,600 more in premiums than their non-smoking counterpart for €300,000 worth of Level Term Life Cover over a 25 year term.
Sample Cost Analysis
Level Term Assurance Life Cover
Age Term (year) Monthly premium non-smoker Monthly premium smoker Savings over 25 year term
35 25 €24.11 €43.37 €5,778.00
45 25 €53.01 €108.53 €16,656.00
So for anyone who gave up smoking at the start of 2018 and are purchasing cover for the first time; they can expect to pay less than they would have one year ago. For individuals with protection cover already in place who have managed to give up smoking for more than 12 months, they can potentially avail of a reduction in the cost of their premiums.
Most Life companies would classify a non-smoker based upon total abstinence from any tobacco products in the last 12 months, including the use of e-cigarettes and nicotine replacement products such as patches or chewing gum.