The True Cost of Smoking: Tens of Thousands More for Life Insurance
Smokers in Ireland pay significantly more for life insurance and mortgage protection compared to non-smokers, according to a recent survey by price comparison website bonkers.ie. The research reveals that the cost difference can amount to tens of thousands of euro over the lifetime of a policy.
For a 38-year-old couple, the monthly cost for €300,000 in mortgage protection cover over 30 years can be as low as €35.60 if they are non-smokers. However, if they both smoke, the monthly cost jumps to €70.09 – an increase of almost 97%, or nearly €12,500 over the life of the policy.
The gap is even wider for life cover, which pays out a tax-free lump sum if one of the insured dies during the policy term. A non-smoking couple can secure €300,000 in cover over 30 years for about €51 a month, while smokers would pay at least €103.88 – a difference of almost 103%, or almost €19,000 over the lifetime of the policy.
Daragh Cassidy of bonkers.ie emphasized that quitting smoking can significantly benefit not just health but also finances. “Quitting smoking really is good for your pocket as well as your health,” he said. “It means kicking the habit can literally save you tens of thousands of euro.”
The research was conducted in May by comparing prices from Ireland’s five leading life insurers: Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life. According to Census 2022, about 16% of adults aged 15 and over in Ireland still smoke daily or occasionally.
It’s worth noting that vapers, even those who have never smoked, are treated as smokers by life insurers. However, individuals who have quit smoking and nicotine replacement products for at least 12 months can apply to be reassessed as non-smokers and potentially pay lower premiums for their existing cover.
Key Findings:
- Smokers pay nearly double for life insurance and mortgage protection
- A 38-year-old smoking couple pays €70.09 monthly for mortgage protection, compared to €35.60 for non-smokers
- Life cover for smokers costs almost 103% more than for non-smokers
- Vapers are treated as smokers by insurance companies
- Quitting smoking for 12 months allows policyholders to be reassessed as non-smokers
The survey highlights the significant financial implications of smoking on insurance costs, emphasizing the potential savings from quitting. As Cassidy noted, the financial benefits of quitting smoking can be substantial, making it a crucial consideration for smokers looking to reduce their expenses.
