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

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:

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.”