Giving up smoking could save you £16,000 in insurance premiums

Published  10 March 2021
   4 min read

People who quit smoking could save up to £16,000 on their insurance premiums, Royal London has found.

Non-smokers could be eligible for lower rate premiums if they have not smoked tobacco or used any nicotine replacement products including e-cigarettes for 12 months.

No Smoking Day falls on Wednesday 10 March this year. Here are examples of the premium differences between smoker and non-smoker rates. Premiums are based on level single life cover, over a 25 year term for £150,000 sum assured:

Age Term (years) Monthly premium non-smoker Monthly premium smoker Savings over 25 year term for non-smoker
30 25 £7.17 £13.13 £1,788
40 25 £13.36 £31.38 £5,406
50 25 £29.13 £82.48 £16,005

A smoker aged 50 would pay nearly triple per month what a non-smoker of the same age would have to pay for the same sum assured, £29.13 compared to £82.48. This highlights how it could pay to quit the habit as, in this example, savings can amount to £16,005 over a 25 year term.

According to the ONS in 2019, 62.5% of the British population aged 16 and above who have ever smoked said they had quit.

Meanwhile smoking increases your risk of developing more than 50 serious health conditions, including cancer and heart, lung and circulatory disorders.

Craig Paterson, Chief Underwriter at Royal London said:

"Giving up smoking can save you thousands of pounds in your life insurance premiums - and that’s on top of the savings made from not buying cigarettes. This No Smoking Day, make the decision that’s best for your health, as well as your wallet.”

If you’re thinking about giving up on No Smoking Day this year you don’t need to go it alone as free support is available from the NHS stop smoking service. The benefits of giving up are worth it in the long run both in terms of your health and your wealth.


For further information please contact:

Neil Cameron, PR Manager

Notes to Editors

  1. Quotes for life insurance premiums are based on level single life cover over a 25 year term for £150,000 sum assured.
  2. ONS statistics on Adult smoking habits in the UK: 2018 can be found here.
  3. What are the risk of smoking?

About Royal London

Royal London is the largest mutual life, pensions and investment company in the UK, with assets under management of £147 billion, 8.7 million policies in force and 4,232 employees. Figures quoted are as at 31 December 2022. 

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