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:
||Monthly premium non-smoker
||Monthly premium smoker
||Savings over 25 year term for non-smoker
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.