Smokers urged to quit and save on life insurance
Smokers were today given an added incentive to kick the habit – saving up to €5,000 on life insurance policies.
A survey from the Financial Regulator revealed consumers could save between€ 595 and €5,000 by quitting smoking and shopping around for better deals.
The watchdog reported that thirty-something men who smoke are hit the hardest while non-smoking women in their 20s get the cheapest policies.
But once again consumers were being urged to keep an eye out for the best deal.
Advising people to shop around, Consumer Director Mary O’Dea said the first weeks of the New Year were a perfect time to reorganise finances.
“At this time of year, many people think about their personal finances. One of the things you might want to consider is whether you need life insurance, or indeed, if you have enough life insurance,” she said.
“Our survey gives you an idea of who might need life insurance the most, depending on personal circumstances.”
Thirty-something smokers seeking life insurance cover worth €300,000 pay €72 a month with Ark Life, Hibernian and Tesco for the cheapest and €83 with Canada Life and €86 with Irish Life.
Non-smoking women in similar circumstances pay €27 with Ark Life up to €33 with Quinn Life. Policies for women who smoke run from €46 a month with New Ireland to €59 with Canada Life and Quinn Life.
Non-smoking women aged 50 pay between €22 and €27, while smokers pay from €43 with Eagle Star, Caledonian Life and Canada Life to €50 with Ark Life.
Ms O’Dea warned anyone taking out a mortgage this year to check the survey for the best deal on life insurance.
She added: “It is worthwhile looking at our survey to see who offers the best mortgage protection rates to make sure you are getting the best deal you can. Remember, you do not have to buy your mortgage protection insurance from your mortgage lender.”
Overall smokers pay considerably more for life insurance. A €250,000 euro mortgage protection policy will cost a 26-year-old female smoker on average €2,600 more than a non-smoker. Similarly men pay an average of €3,200 more if they smoke.
But while smokers pay more, there are still significant differences in the rates. A 38-year old man who smokes could save over €11 a month for a €300,000 mortgage protection policy. That adds up to savings of €3,400.
