Smokers pay double for life cover

EX-SMOKERS who have successfully quit the habit for 12 months or more are being called upon to reap the financial benefits.

One of the leading life insurance and pensions companies in Ireland, Royal London Ireland, is advising people that if they successfully quit the habit for 12 months or more, it can mean substantially reduced life insurance premiums, in some cases by up to 50%.

Experts at Royal London Ireland say there are life insurance policyholders nationwide, who now fit the criteria of ex-smokers, that are unaware of the potential cost-savings resulting from their change of status. Compared to a non-smoker, a smoker could pay around twice as much for life insurance.

Barry McCutcheon, Protection Propositions Lead at Royal London Ireland commented: “Ex-smokers can save thousands of euros on their life insurance premiums. That’s because if you have life insurance in place and you’ve successfully given up smoking for more than 12 months, it’s now possible to dramatically reduce the cost of your premiums.

“Although it’s generally expected that smokers will face higher premiums when it comes to life insurance, the cumulative impact on the overall cost throughout the policy’s lifetime is not always fully considered. For instance, a smoker turning 45 on their upcoming birthday will pay more than €18,000 more than a non-smoker for a €300,000 Level Term Life Cover over a 25-year term.

“A smoker with a 25-year Specified Serious Illness policy for €300,000, who turns 45 on their next birthday, can expect to pay €68,000 more than a non-smoker. These striking cost savings on life insurance are just another motivating factor for anyone who is planning to give up the expensive habit for good.

“Government measures are having a positive effect on reducing the amount of people in Ireland who smoke. The most recent Healthy Ireland Survey 20232 recorded that 18% of the population are current smokers. This marks a 5% reduction in the number of smokers in the country since the survey was first published back in 2016, in which 23% of people smoked.

“Within this cohort of people, it’s likely there are individuals unaware that they can take advantage of more affordable life insurance rates. If you are one of them, we would advise you to see if you can benefit from decreased life insurance premiums – it could put more money in your pocket.”

Once re-classification as a non-smoker is confirmed, Royal London Ireland will reduce your life insurance premium to reflect that of a non-smoker.