Article date: 6 March 2008
With around 2.25 million people planning to quit on No Smoking Day next week* (Wednesday 12 March) Norwich Union life insurance advises that people could get dramatically lower life insurance premiums by giving up the "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 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.
But for those who do manage to stop, the savings can be substantial as the following examples of Norwich Union life insurance premiums show***:
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.
Male, 25 next birthday. 30 year level term with reviewable CI cover. Sum assured £125,000.
Joint policy - male and female both 30 next birthday. 25 year level term without CI cover. Sum assured £150,000
Male, 45 next birthday. 10 year level term with reviewable CI. Sum assured £50,000.
***Prices valid as quoted on 6 March 2008. These policies have no surrender value. Term assurance pays a lump sum on death (or critical illness if selected) within the plan term.
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, No Smoking Day could be the perfect day to stop."
* 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:
Sarah Horner 01904 452828 Out of hours 07800 691569
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.