Guides

Smoking & Life Insurance

1

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?

At Beagle Street, as with other insurers, if you have smoked e-cigarettes or used any nicotine replacement products in the last year we will make no distinction from using tobacco products; and you will therefore be classed as a smoker.

If you have not used e-cigarettes for 12 months or more, and already have a Life Insurance policy set-up, you could be paying too much.

You need to be honest when filling out your application with us, or your policy could be invalidated.

How does giving up smoking affect life insurance premiums?

The good news is if you’ve given up smoking for more than 12 months and are now looking for life insurance, your premiums will be the same as a non-smoker. If you were a smoker and purchased Life Insurance or Critical Illness cover but now no longer smoke, it could be worth checking to see if you can get cheaper cover by contacting us.

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/