It’s not just those on 20-a-day whose premiums are higher because of their habit, even people who smoke e-cigarettes or who class themselves as ‘occasional’ or ‘social’ smokers could face inflated costs. Life insurance for smokers.
According to MoneySuperMarket, insurers do not distinguish between those who partake daily or occasionally. So, if you have smoked in the last 12 months, you could end up paying more for your life insurance.
What’s more, because the long-term effects of e-cigarettes have yet to be agreed by experts, these are also viewed as normal cigarettes for life insurance purposes.
Kicking the habit
The good news is if you give up smoking for longer than 12 months you can reduce your premiums significantly.
Allstate life insurance
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “If you give up smoking and do not ingest nicotine for 12 months, you’ll be regarded as a non-smoker by life insurers. If you already have life cover and successfully give up smoking, it’s worth telling your insurer to see if they will adjust your premiums accordingly.
“Alternatively, you could run a fresh quote as a non-smoker to see what prices are available.
“Remember, using nicotine in any form, including patches and gum, means you’ll be regarded as a smoker – you have to be nicotine-free for 12 months to get the lower premiums.”
Costs in detail
According to the analysis by the price comparison website, smokers pay £26.07 more for decreasing term insurance with critical illness cover (CIC) than non-smokers. With decreasing term the amount of cover reduces over the term of the policy to reflect the decline in the amount owed on a capital and interest mortgage. CIC, meanwhile, provides a tax-free lump sum in the event of a diagnosis for a specified illness or medical condition.
Those on level term cover, where the amount insured remains the same for the duration of the policy, with CIC pay £16.59, which is 48% more than non-smokers.
The study also discovered people in the 36 to 45 age group were most likely to have smoked within the last 12 months – with 30% admitting to have indulged.
Amongst the 46 to 65 age range this was 26% and when it came to under 25s just 5% had smoked in the last year.