Given the health risks associated with smoking and the use of e-cigarettes (vapes), life insurance providers will apply a loading, or extra charge, on your policy if you are a smoker at the time of application. Generally speaking, this usually means that the premium will double.

 

For example, assuming no other health or occupational risks apply, €200,000 of life insurance over a 20 year term will cost a 40 year old non-smoker €21.72 per month. The same policy for a smoker costs €41.11 per month.

However, if you have kicked the habit and have not smoked or used nicotine replacement products (e.g. vapes, nicotine patches etc.) in the last 12 months, you can now apply for life insurance as a non-smoker. This can often mean that there are savings to be made as your monthly premiums are reduced.

 

I had a recent case where my client was paying nearly €55 per month for her mortgage protection policy which she took out as a smoker in 2013. As she had not smoked or used a nicotine replacement product in the last 2 years, I was able to secure the exact same life insurance benefits, over the same term (26 years) for €40 p/m.

 

This is a saving of €15 per month which is €4,680 over the next 26 years! This goes to show the importance of regular reviews with your financial advisor. They will be able to see where savings could be made.

 

If you would like more information please contact the Gallagher team today at info@ajg.ie.