Kildare's smokers pay double for life insurance due to health risks – Kildare Nationalist

This time of year is one when many people set new health goals and those who smoke might decide that in 2022 they will give up the bad habit once and for all.

Experts at Royal London are advising smokers in Kildare who are considering quitting that they could be further incentivised by the fact that those who successfully quit smoking in January 2021 may now be able to substantially reduce the cost of their life insurance premiums.

New figures from the leading protection specialist highlight how much of a difference smoking can make to the cost of life cover, with smokers expecting to pay twice as much for life insurance when compared with non-smokers.

“The national average of people smoking is 18% which equates to 30,410 people in Kildare. We want to let all these people know that they could reap huge financial benefits if they manage to quit the habit,” said Liz Murray of Royal London in Kildare.

“Each year thousands of people throughout Ireland aim to give up smoking, with the beginning of a new year seen by many as the perfect time to jumpstart their health goals. While we all know that quitting smoking isn’t easy, the Healthy Ireland report shows the prevalence of smoking in Ireland is reducing as more people successfully go tobacco-free.

“Beyond the physical health advantages of this, people can reap significant financial benefits too. It’s common enough to hear stories of people saving up the money from not buying cigarettes over a year and motivating themselves by allocating it towards a car or holiday. But a less commonly-known motivational factor is the thousands in savings that can potentially be made on their life cover.”

Recent cost analysis from Royal London reveals the difference in premiums paid between non-smokers and smokers.

Level Term Assurance Life Cover of €300,000 ^

Age
Term (years)
Monthly premium non-smoker
Monthly premium smoker
Savings over 25-year term

35
25
€24.58
€44.80
€6,066.00

45
25
€54.78
€115.71
€18,279.00

Specified Serious Illness Cover of €300,000 ^

Age
Term (years)
Monthly premium non-smoker
Monthly premium smoker
Savings over 25-year term

35
25
€114.39
€188.45
€22,218.00

45
25
€278.78
€506.72
€68,382.00

Speaking about the cost analysis, Ms Murray said: “The price differential here is quite substantial. Our experience is that, while many people expect smokers to pay more in premiums, many don’t realise how much more it adds up to over the lifetime of the policy. For example, a smoker turning 45 on their next birthday will pay over €18,000 more in premiums than a non-smoker will for €300,000 worth of Level Term Life Cover over a 25-year period. The same smoker can expect to pay over €68,000 more than a non-smoker for a Specified Serious Illness policy worth €300,000 over a 25-year term.”

Royal London wants to highlight the issue particularly for those smokers aged between 45 and 54, which according to the latest Healthy Ireland survey is now the age cohort with the highest proportion of smokers (24%).

“In Kildare alone, there are approximately 30,151 adults in [the] 45–54-year age group, which would mean an estimated 7,200 of these people smoke,” said Ms Murray.

She noted that there’s an overall trend in Ireland of less people smoking “which of course, is positive. It shows that the Government’s campaigns to reduce the number of people smoking seem to be working.

“If you’re someone who successfully gave up smoking more than 12 months ago and already have life cover in place, you could potentially get a reduction in the cost of your policy premiums.”

According to Royal London, if you wish to be re-categorised as a non-smoker for life insurance purposes, you must not have used any tobacco products in the last 12 months and have no intention to use any in the future. This includes e-cigarettes and nicotine replacement products such as patches or chewing gum.

As well as providing some health-related information, it’s possible that your insurance provider may ask you to complete a cotinine test (smoker test). This is a simple test which involves screening a sample of saliva or urine for tobacco use.