A 45 year old smoker will pay over €12,000 more in premiums for Mortgage Protection Life Cover over a 25 year term than their non-smoking counterpart. While a 55 year old smoker will pay over €11,000 more than their non-smoking peer over the course of the policy for Term Assurance Life cover for a 10 year term.
This is according to new research released today by experts at Royal London who are calling on all those who have successfully kicked the habit since 1 January 2016 to go about reaping the financial rewards of their achievement.
The experts claim if you have given up smoking over 12 months ago or more it’s possible to be reclassified as a non-smoker for life cover purposes which could mean, all things being equal, that as a non-smokers you could pay anywhere from 35% to 50% less than smokers for cover due to the health dangers linked to the habit.
Statistics show that the number of people quitting smoking in Ireland is on the rise. Smoking rates are falling faster in Ireland than in any other EU country, falling four times faster than average here since 2012. During the period 2015-16 10% of Irish smokers quit according to the summary of findings from the Department of Health’s Healthy Ireland Survey 2016.
The Healthy Ireland Survey 2016 reports that more than one in four people (28%) used to smoke, which means more smokers have succeeded in quitting than currently smoke (23%). While smoking is still prevalent in Ireland statistics show that it is dwindling in popularity and a high level of those who do still smoke want to stop.
This report also showed that 11% of smokers are currently trying to quit, a further 20% are planning to quit and another 28% are thinking about quitting.
Royal London say that to be classed as a non-smoker you must not have used any tobacco products in the last 12 months and have no intention to do so in the future. This includes e-cigarettes and nicotine replacement products such as patches or chewing gum.
In rare cases, a person could be asked to complete a cotinine test (smoker test) which is a simple test to screen for tobacco use by testing a sample of saliva or urine.
Commenting on the figures, Royal London’s Underwriting and Claims Lead, Colette Houton said, "When it comes to smoking it seems we are increasingly becoming a nation of quitters, which is good news for our health and our bank balances. Thousands of people across the country will have made quitting smoking their New Year’s Resolution this year and we wish them the best of luck."
She added, "If you’re a smoker considering quitting the potential cost savings on your life insurance is another reason to break the habit that you can add to the list. And for those who managed to succeed in quitting the habit last year, speak to your local Financial Broker who will be able to advise you about the potential cost savings for non-smokers."
Source: www.businessworld.ie
