Smoking & Life Insurance
Life Insurance and smokers
The negative health implications of smoking are now well-documented and therefore this can often have implications on your insurance and critical illness premiums.
Occasional smoker or smoke 20 a day
An occasional cigar? One cigarette every Saturday night? The way in which insurance premiums are calculated at Beagle Street is consistent with other insurers in regards to smokers. If you have used any form of tobacco or nicotine products in the last 12 months and declare so on application, the premium offered to you will differ from non-smokers. This is on the basis of the health implications which smoking can lead to.
Regardless of the amount or how often you may have used tobacco or nicotine products in the last 12 months, honesty is vital in validating your application. If you take out a policy with us and were to become critically ill or die within your insurance policy term and it was discovered you were a smoker – the policy could be invalid or the amount paid to your dependants could be reduced.
Can smoking E-Cigarettes affect life insurance premiums?
How does giving up smoking affect life insurance premiums?
The benefits of quitting smoking
If you’re looking to reduce your premiums, stopping smoking and maintaining a healthy lifestyle is a good place to start – see below for an example of cost-saving for a quitting smoker.
The average smoker aged 35 with a 25 year decreasing term policy of £150,000 cover pays around £20 per month* compared to a non-smoker who would pay around £14 per month with the exact same policy terms. Over 25 years that’s a saving of £1800 for a non-smoker.
There are also huge savings based on the number of cigarettes that would have been bought during the policy term, this can be estimated at around £40,656**.
* Based on a policy including Critical illness and Child CI.
** Based on current cigarette prices correct as of 2013/14 index. Source: http://www.the-tma.org.uk/tma-publications-research/facts-figures/uk-cigarette-prices/