Smokers are being told that quitting could lead to substantial savings on life insurance.
According to a recent cost analysis conducted by Royal London Ireland, smokers could cut the cost of their life insurance premiums by as much as 50% if they successfully quit the habit for 12 months or more.
"If you've been nicotine-free for over a year, contact your insurer to ensure you’re benefiting from lower premiums," Protection Proposition Lead at Royal London Ireland Barry McCutcheon explains.
A 44-year-old smoker could save €731 on premiums a year for a 25-year term €300,000 life insurance policy, or a total of €18,279 over 25 years, according to the insurance company. If the same individual had specified serious illness cover of €300,000, they could save €2,920 a year, or €72,990 over 25 years, on premiums.
Royal London Ireland also warned that vapers could unknowingly be facing higher life insurance bills.
Vapers are still considered smokers by insurers and could be paying higher premiums as a result.
When it comes to being classified or re-classified as a non-smoker on one’s life insurance, Royal London Ireland states that an individual must have completely abstained from all nicotine and tobacco products in the past twelve months.
This abstinence requirement includes the use of e-cigarettes, and vapes, as well as nicotine replacement items such as nicotine patches, lozenges, sprays or chewing gum.
Customers might be subjected to a cotinine test (smoker test) when buying or renewing cover from an insurance provider, which involves screening a sample of saliva or urine for tobacco use.
