Ex-smokers pay less for insurance
June 25, 2007 by admin
Filed under News, News-Insurance
England is set to go smoke free by the end of this week (July 1st) and many smokers may find that kicking the habit will benefit them in more ways than one.
As well as the money saved on not stumping up for cigarettes, ex-smokers will also see the premiums they pay for life insurance plummet.
The average 35-year-old male who regularly lights up can expect to pay around £13.50 per month for a £100,000 term assurance policy providing cover for 20 years.
However, if the same person were to quit smoking, within a year he would see his monthly payments fall to around £7.90.
“This shows just how important it is to shop around for an annuity which meets your individual needs and also takes into account lifestyle or health issues,” commented Matt Ward from financial research company Defaqto.
Insurance firms require applicants to have been smoke free for at least a year before they can be considered an ex-smoker and it is not easy to pull the wool over their eyes.
Many insurance firms carry out a cotinine test which detects nicotine in blood, urine and saliva.
