Stop Smoking and Save Thousands on Life Insurance
CHESTER, England, March 5, 2012 /PRNewswire/ --
- Smokers could save at least £5,500 on life cover by quitting
- Stubbing out cigarettes could save another £1,880 a year, says MoneySupermarket
With National No Smoking Day (14 March 2012) approaching, and the fifth anniversary of the smoking ban this year,[1] recent research from MoneySupermarket.com reveals those who kick the habit could see a benefit to their wealth as well as their health.
The UK's leading comparison site found smokers who kick the habit could save on average £5,490 on combined Critical Illness Cover (CIC) and life cover, or up to £1,788on a single life insurance policy.[2]Furthermore, with the average cost of a packet of 20 cigarettes hitting £6.95, a smoker could save themselves a further £1,880 per year by making the decision to go smoke-free.[3]
Emma Walker, head of protection atMoneySupermarket said: "Not only can smokers reap the medical benefits of kicking the habit, but they can avoid letting their hard-earned cash go up in smoke too. With significant savings to be made, those who make the decision to quit should shop around for the best insurance deal to suit their circumstances. Insurers will insist smokers have kicked the habit for a full year in order to be classed as a 'non-smoker' and qualify for savings on their life insurance premium."
MoneySupermarket found non-smokers can make considerable savings on combined CIC and life insurance policies. For example, a 30 -year old male wanting £150,000 worth of cover over 25 years could save at least £5,490 with Aviva over the term, or £18.30 per month, if he made the decision to go smoke free.A woman wanting the same level of cover could save at least £2,742 a term with Ageas Protect or £9.14 per month just by kicking the habit.
Emma Walker continued: "Critical Illness Cover could prove vital if a person is unable to work due to serious illness, which is especially important in today's financial climate. With considerable savings to be made, smokers will hopefully find the willpower to permanently kick the habit, benefiting both their physical and financial health."
MoneySupermarket.com has the following tips when looking for protection:
- Don't always be lured by the lowest premium or incentives. Look at policy coverage and extras within the cover to make sure you are getting the best value for money and the best coverage;
- Make sure your answers are truthful and correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected;
- Always review cover following life-changing events such as a change of job, having children, a change in marital status, increased debt or moving house;
- When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place;
- If the premium is too big for your budget, consider getting some initial critical illness cover that you can add to later.
Notes to editors:
[1]http://www.nosmokingday.org.uk/organisers/getinvolved.php?status=launches2012
Fifth anniversary of 'Smoke-free England' - the smoking ban - on 1 July 2012
[2] Critical illness & life cover for men and women; savings to be made by non-smokers on a monthly and term basis:
30-year-old male, GBP150,000 over 25 years for single life cover
Monthly Total Monthly Total Savings per Savings for
premium premium over premium premium over month by not term by not
Provider smoker 25 years non-smoker 25 years smoking smoking
Aviva GBP13.53 GBP4,059 GBP7.57 GBP2,271 GBP5.96 GBP1,788
Legal & General GBP13.68 GBP4,104 GBP7.66 GBP2,298 GBP6.02 GBP1,806
Zurich GBP14.35 GBP4,305 GBP8.50 GBP2,550 GBP5.85 GBP1,755
LV= GBP14.50 GBP4,350 GBP8.38 GBP2,514 GBP6.12 GBP1,836
Ageas Protect GBP14.86 GBP4,458 GBP8.79 GBP2,637 GBP6.07 GBP1,821
30-year-old female, GBP150,000 over 25 years for single life cover
Monthly Total Monthly Total Savings per Savings for
premium premium over premium premium over month by not term by not
Provider smoker 25 years non-smoker 25 years smoking smoking
Aviva GBP9.11 GBP2,733 GBP6.23 GBP1,869 GBP2.88 GBP864
Legal & General GBP10.30 GBP3,090 GBP6.62 GBP1,986 GBP3.68 GBP1,104
LV= GBP10.69 GBP3,207 GBP7.09 GBP2,127 GBP3.60 GBP1,080
Zurich GBP10.75 GBP3,225 GBP6.70 GBP2,010 GBP4.05 GBP1,215
Ageas Protect GBP10.86 GBP3,258 GBP7.50 GBP2,250 GBP3.36 GBP1,008
30-year-old male, GBP150,000 over 25 years for critical illness & life cover
(CIC + TPD Own Occupation Only)
Monthly Total Monthly Total Savings per Savings for
premium premium over premium premium over month by not term by not
Provider smoker 25 years non-smoker 25 years smoking smoking
Aviva GBP50.75 GBP15,225 GBP32.45 GBP9,735 GBP18.30 GBP5,490
Ageas Protect GBP50.89 GBP15,267 GBP31.50 GBP9,450 GBP19.39 GBP5,817
AEGON Scottish
Equitable GBP54.15 GBP16,245 GBP32.81 GBP9,843 GBP21.34 GBP6,402
Zurich GBP54.72 GBP16,416 GBP33.20 GBP9,960 GBP21.52 GBP6,456
Scottish
Provident GBP55.28 GBP16,584 GBP33.29 GBP9,987 GBP21.99 GBP6,597
30-year-old female, GBP150,000 over 25 years for critical illness & life cover
(CIC + TPD Own Occupation Only)
Monthly Total Monthly Total Savings per Savings for
premium premium over premium premium over month by not term by not
Provider smoker 25 years non-smoker 25 years smoking smoking
Ageas Protect GBP41.36 GBP12,408 GBP32.22 GBP9,666 GBP9.14 GBP2,742
Aviva GBP41.45 GBP12,435 GBP32.30 GBP9,690 GBP9.15 GBP2,745
AEGON Scottish
Equitable GBP43.98 GBP13,194 GBP33.69 GBP10,107 GBP10.29 GBP3,087
Zurich GBP44.19 GBP13,257 GBP33.79 GBP10,137 GBP10.40 GBP3,120
Scottish
Provident GBP44.82 GBP13,446 GBP33.31 GBP9,993 GBP11.51 GBP3,453
Sourced by http://www.moneysupermarket.com 20.02.2012
[3] Average price of a pack of cigarettes is £6.95: http://www.the-tma.org.uk/tma-publications-research/facts-figures/uk-cigarette-prices/
In 2009, an average number of 13.1 cigarettes were smoked each day by current smokers. This includes an average of 13.9 cigarettes for men and 12.4 for women, totalling 4721.5 per year (or 239 packets of 20 per year).
http://www.ic.nhs.uk/pubs/smoking11
239 packets of 20 cigarettes per year at £6.95 = £1,661.05 per year spent on cigarettes, plus average yearly life insurance savings of £18.30 per month x12= £219.60.40. Total saved in a year = £1880.65
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