2020’s “Smoking Quitters” Could be in Line for Big Savings in 2021!
- Sticking to your no smoking New Year’s resolution may save you thousands on life cover
- Figures show smokers pay double on life insurance premiums
January is a time when many smokers make it their New Year’s resolution to give up smoking once and for all. After the expense of Christmas, it may come as welcome news to anyone who has successfully managed to quit since January 2020 or before, that this year their life insurance premiums may be reduced dramatically. Experts at protection providers Royal London say that many policyholders are unaware of the significant cost savings that can be made on their life insurance premiums if they have given up smoking – with non-smokers benefiting from a reduction in premiums of up to around 50%.
Brendan Reilly, Director of Eolas Money says that “When weighing up the advantages of quitting smoking, there are obvious health benefits and the cost savings from now being a non-smoker especially given a packet costs approx. €14. However, fewer people may immediately think of the potentially significant cost benefit of quitting in terms of the impact it has on life cover premiums. As you might imagine, smokers pay more in premiums for life insurance than non-smokers, due to many damaging health effects, but people may not be aware of just how sizeable the difference can be between the premiums charged.”
Analysis to illustrate the difference in premiums paid between non-smokers and smokers are outlined below:
Level Term Assurance Life Cover
| Age | Term (years) | Monthly premium non-smoker | Monthly premium smoker | Savings over 25-year term |
| 35 | 25 | €24.58 | €44.80 | €6,066.00 |
| 45 | 25 | €54.78 | €115.71 | €18,279.00 |
Specified Serious Illness Cover
| Age | Term (years) | Monthly premium non-smoker | Monthly premium smoker | Savings over 25-year term |
| 35 | 25 | €114.39 | €188.45 | €22,218.00 |
| 45 | 25 | €278.78 | €506.72 | €68,382.00 |
“The figures speak for themselves – showing massive savings for non-smokers when compared with smokers. A smoker turning 35 on their next birthday will pay over €6,000 more in premiums than their non-smoking counterpart for €300,000 worth of Level Term Life Cover over a 25-year term. A smoker turning 45 on their next birthday can expect to pay over €68,300 more than a non-smoker during the course of a Specified Serious Illness policy for €300,000 over a 25-year term. Our experience is that while many people expect that smokers will pay more in premiums; they are surprised how much the cost savings can add up to over the lifetime of the cover.”
If you have given up cigarettes or thinking about giving them up – well done!! To see how we can help you achieve more savings, contact Eolas Money on queries@eolasmoney.ie or 052 6129696.