Life insurance premiums could cost up to £ 16,000 more for smokers
A 50-year-old smoker would pay almost triple what a non-smoker of the same age.
Releasing the statement on the occasion of this year’s No Tobacco Day, Royal London said non-smokers may be entitled to lower rate premiums if they can prove they have been smoking for a long time. at least a year. Unfortunately, these tests do not differentiate between cigarettes and safer nicotine replacement products such as electronic cigarettes.
According to the insurance company, a 50-year-old smoker would pay nearly triple what a non-smoker of the same age would pay per month. This would equate to £ 82.48, compared to £ 29.13, on a single life cover basis, over 25 years for the sum insured of £ 150,000.
Figures released a month earlier by the same insurer indicated that smokers could pay between € 6,000 and € 60,000 more than their non-smoking counterparts on life insurance policies.
Many smokers are unaware of these differences
Experts from the insurance agency point out that unfortunately many policyholders are not aware of the significant savings on insurance policies that they could benefit from if they were to quit smoking, which could sometimes be reduced by more than 50%. %.
“When we evaluate the benefits of quitting smoking, we usually think of the obvious health benefits and cost savings to be achieved by not buying cigarettes frequently – especially since from 2021 a pack will cost € 14, ”Michele said. Murphy of the Royal London.
“However, fewer people can immediately think of the significant financial benefits of the shutdown in terms of impact on life insurance premiums. As you can imagine, smokers pay more in life insurance premiums than non-smokers, due to many adverse health effects, but people may not be aware of the importance of the difference between the premiums invoiced, ”she added.
Discussing a cost analysis carried out by Royal London, Murphy highlighted the price increases smokers are subjected to as they age. “The numbers speak for themselves – showing massive savings for non-smokers compared to smokers. A smoker who turns 35 on his next birthday will pay over € 6,000 more in premiums than his non-smoker counterpart for € 300,000 of uniform term life insurance coverage over 25 years.
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