For insurance companies, deciding how much to charge any given individual for life cover is all about calculating the level of risk involved in insuring them. Insurance companies assess this risk by taking medical histories and collecting information about lifestyles, physical health and other factors. Looking after your health, therefore, is one of the best ways of reducing the cost of life cover-and the smoking habit is one of the single biggest lifestyle factors that drive the cost of insurance up.
The Higher Cost of Life Insurance
The average smoker will pay at least 40% more for life cover than they would if they were a non-smoker. Some insurance companies are more forgiving than others, but depending on the company you choose, you could pay up to 55% more for your life insurance. Being a smoker affects all forms of life and health based insurance, including critical illness cover and income protection.
Quitting cigarettes can amount to huge savings on your life insurance premiums. For example, a 35 year old male smoker with a policy benefit of