Quitting smoking could save you £16,000 in insurance premiums

Published  09 March 2022
   5 min read
  • Non-smokers can save up to £16,000 in life insurance premiums1
  • More than a third (36%) of people said they wanted to improve their health in the new year, which included stopping smoking2
  • Stopping smoking can greatly reduce the likelihood of getting other serious illnesses

Analysis published by mutual insurer Royal London to coincide with No Smoking Day (9 March) has found quitting smoking could save people up to £16,000 in insurance premiums.

Smokers who kicked the habit could be eligible for lower rate premiums if they have not smoked tobacco or used any nicotine products in the last 12 months.

Research from Royal London also found that 36% of people said they wanted to improve their health as a new year’s resolution, which also included stopping smoking.

Below 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 a 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

Craig Paterson, Chief Underwriter at Royal London, said:

“While the new year is a popular time for many to give up smoking, No Smoking Day is a perfect opportunity for those who didn’t quite manage to kick the habit. Committing to making a positive change to your health can also lead to a positive change to your wallet – and realising that may help people stick to their decisions. More importantly, stopping smoking can greatly reduce the likelihood of getting other illnesses such as cancer, heart disease and strokes.

“When it comes to the cost of premiums, smokers usually pay around twice as much as their non-smoking counterparts, rising to nearly three times as much for older smokers. So there’s a huge potential for savings on premiums, and that’s on top of not buying cigarettes as well as the benefits to your health.”



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, as at March 2021. 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.
  2. Royal London commissioned a survey by Opinium between 17-21 December 2021 with a sample of 2,000 nationally representative UK adults.

For further information please contact:

Neil Cameron, PR Manager

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. 

Learn more at royallondon.com