05 March 2020

Quitting smoking could save you up to £18,000 in insurance premiums

5 min read

Meera Khanna, Consumer PR Manager
Meera Khanna

Corporate PR Manager - Protection


People who give up smoking can save more than just the cost of cigarettes or other tobacco products as they could save up to thousands of pounds from their life insurance premiums.

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 11 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 £7.61 £14.08 £1,941
40 25 £14.33 £33.79 £5,838
50 25 £33.94 £94.07 £18,039

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, £33.94 compared to £94.07. This highlights how it could pay to quit the habit as, in this example, savings can amount to £18,039 over a 25 year term.

According to the ONS in 2018, 61% of the British population aged 16 and above who have ever smoked said they had quit. Around 15% or 7.2 million adults in the UK are smokers, a decline of 5% over the last five years.

Craig Paterson, Underwriting and Claims Philosophy Manager at Royal London said:

"Giving up smoking will not only benefit your health, but your wallet too. After the first twelve months of no smoking you could see your life insurance premiums plummet, and that’s on top of the savings made from a change in spending habits on cigarettes. The benefits of giving up make it the most sensible thing for smokers to do.”

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.




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: https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/bulletins/adultsmokinghabitsingreatbritain/2018

For further information please contact:

Meera Khanna, Corporate PR Manager - Protection

About Royal London:

Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.