No Smoking Day could help lighten life insurance premiums

Article date: 11 March 2009

With over 1 million people planning to quit on No Smoking Day this week* (Wednesday 11 March), Norwich Union, soon to be Aviva, advises that people could get dramatically lower life insurance premiums by giving up the so called "evil weed".

By kicking the habit and applying for life cover as non-smokers, people could see monthly premiums cut by up to almost half. For some this could mean life cover for little more than the cost of a packet of 20 cigarettes**.

Although the insurer is keen to warn that this won't happen overnight. Individuals will have to steer clear from tobacco products for a full 12 months before being classed as non-smokers.

For those who do manage to quit, however, the savings can be substantial as the following examples of Norwich Union premiums show***:

Customer details

Monthly premium - non smoker(s)

Monthly premium - smoker(s)

Annual difference for non smoker(s)

Female, 35 next birthday. 15 year level term assurance without critical illness (CI) cover. Sum assured £75,000.

£7.17

£9.12

£23.40

Male, 25 next birthday. 30 year level term with reviewable CI cover. Sum assured £125,000.

£23.62

£37.62

£122.40

Joint policy - male and female both 30 next birthday. 25 year level term without CI cover. Sum assured £150,000

£13.40

£23.60

£122.40

Male, 45 next birthday. 10 year level term with reviewable CI. Sum assured £50,000.

£29.65

£55.20

£306.60

***Prices valid as quoted on 9 March 2009. These policies have no surrender value. Term assurance pays a lump sum on death (or critical illness if selected) within the plan term.

Louise Colley, head of protection at Norwich Union, says: "People stand to make a double saving if they give up their smoking habit; as well as not spending more than £5 on every pack of 20 cigarettes (which for a 20-a-day smoker, could add up to more than £1,825 a year) people could save by cutting the price of their protection products too.

"People who smoke have an increased risk of heart disease, breathing disorders and certain cancers, to name but a few illnesses, which is why non-smokers often pay significantly less for life insurance and critical illness policies. So bearing in mind both the health and the monetary benefits, No Smoking Day could be the perfect day to stop."

-ends-

*Source: No Smoking Day registered Charity

**Based on assumed average cost of £5 for a packet of 20 cigarettes

For further details contact the Norwich Union press office:
Isabelle Handley-Allen
Telephone: 01904 453378
Out of hours: 07800 695661

Sarah Poulter
Telephone: 01904 452828
Out of hours: 07800 691569

Notes to editors:

About Norwich Union
Norwich Union is one of the UK's biggest life insurers. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.

Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media

In the summer of 2009 Norwich Union will change its name to Aviva. Aviva is the world's fifth largest insurance group and operates in 27 countries. Aviva is to become the customer brand worldwide, thus enabling the company to compete even more effectively on a global scale for the benefit of customers, staff, business partners and shareholders.

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