Sunday 20 August 2017

Couples who quit smoking could save €2,000 on life cover

Charlie Weston Personal Finance Editor

A couple who give up smoking could save more than €2,000 a year on life insurance, a new report has shown.

The findings of a study by Acorn Life mean that not only is smoking cigarettes the biggest killer in Ireland, puffing away will also mean your cash is going up in smoke.

A couple in their 50s who smoke will end up paying as much as €180-a-month extra for €250,000 of life insurance cover, compared with a non-smoking couple of the same age.

Over a year, this works out at more than €2,000, and is in addition to a cost of around €250 each month they are likely to spend on their cigarettes.

When it comes to critical illness cover, the financial punishment for smokers is even more severe.

The same smoking couple would pay a staggering €420 a month extra for critical illness cover.

The costs are not as high for younger individuals, but they will still pay hundreds extra every year, typically adding up to the price of a car over their lifetime, Acorn Life's head of business development Keith Butler said.

The findings of the study are in line with data from the National Consumer Agency on the premium paid by smokers for life and critical illness cover.

Mr Butler said the good news was that those who had life insurance but had since given up smoking could now save a packet by renegotiating their fees.

"Those who have given up smoking in the last few years could now be eligible for non-smoker rates involving a significant reduction in their life cover premiums," he said.

Irish Independent

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