Smoking ban could help lighten life insurance premiums

Article date: 21 June 2007

As thousands of smokers prepare to give up on 1 July when the smoking ban comes into effect, Norwich Union advises that quitting could dramatically reduce your life insurance premiums.

By kicking the habit, people could see monthly premiums cut by up to almost half - meaning that some could get monthly cover for little more than the cost of a packet of cigarettes (see table below).

Although the insurer warns 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.

But for those who stop and "stay clean" the savings can be significant as the following examples of Norwich Union life insurance 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.

£6.05

£11.07

£60.24

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

£25.00

£38.25

£159

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

£14.45

£25.55

£133.20

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

£30.50

£59.00

£342

*Prices valid as quoted on 21/06/07. These policies have no surrender value.                                                                                                                                         

Darren Dicks, head of protection marketing for Norwich Union, says: "As well as not spending around £5 on every pack of 20 cigarettes they would have bought (which could add up to £1,825 a year for a 20-a-day smoker), people could save twice over 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, 1 July could be the perfect day for smokers to stop."

-ends-     

Case studies of ex-smokers are available.

For further details contact the Norwich Union press office:
Sarah Horner 01904 452828 Out of hours 07800 691569
Louise Soulsby 01904 452617 Out of hours 07800 699526

Notes to editors:

About Norwich Union
Norwich Union is the UK's largest insurer. 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's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.  

Back to top