Smokers often pay up to double the price for life insurance compared with non-smokers. If you’ve recently given cigarettes the flick, then it’s time to review your policy because you could save could save up to $1000 on your yearly premium*.
We’ve heard the message from government health campaigns several times: cigarettes and other nicotine products are directly connected with several serious and terminal diseases, including cancer, stroke, heart disease and diabetes.
Life insurers know this too. Their policies for smokers are more expensive, as insurers add a risk loading to your policy.
It’s why quitting smoking can lead to people saving hundreds of dollars in premiums. Yet many ex-smokers don’t check if they can get cheaper life insurance as a result.
Why the savings add up
If you haven’t smoked in a year or more, you’re typically classified as a non-smoker, and that means you’re eligible for a lower premium.
Here’s how an ex-smoker could save $386 a year on their life insurance.
- To be considered a non-smoker, you usually need to have quit for a minimum of 12 months, although different insurers can vary their definition of this (vaping, nicotine patches and cigars are often still classified as smoking).
- The average premium for a smoker in their fifties is $822 per year for $1m of cover, based on the funds on Life Insurance Comparison’s panels*.
- The average price for a non-smoker for the same level of cover is $435**.
A quick way to get cheaper premiums
Quitting smoking is a great opportunity to review your existing life insurance or take out a new policy. A short chat with one of Life Insurance Comparison’s specialists from our team could help you make significant savings on your existing premium.
And if you’re looking for your first life policy after ditching the cigarettes, our team can find the most affordable quote from our panel of insurers.
We love quitters at Life Insurance Comparison. So celebrate giving up by cutting the cost of your life policy today.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
*Based on an average policy of $2,000 taken out through Life Insurance Comparison’s panel of insurers.
**Based on 10 insurers on Life Insurance Comparison’s panel, accurate as of 3 December 2020.