3.3 million ex-smokers are collectively paying £316 million more a year on life insurance premiums than they need to because they have not informed their insurer they have quit, according to new research by Sainsbury's Life Insurance. Life insurance policyholders who have kicked the habit could save an average of 46% on their premiums.
6.5 million life insurance policy holders gave up smoking more than 12 months ago and have not used nicotine replacement products in the past year, so could be eligible to be classified as non-smokers by a life insurer.
Andrew Gray of Sainsbury's Life says, "A huge number of people have quit smoking over the past few years and the health benefits of not smoking are now very well-known, but the financial gains are often underestimated. Apart from the obvious savings you can make from not buying cigarettes, your life insurance premium could decrease as you are demonstrating that you've made efforts towards living a healthier lifestyle. If you gave up smoking more than 12 months ago and have not used any nicotine replacement products in that time, you could qualify as a non-smoker. Now is the time to notify your life insurer, or if you do not have a policy, to shop around for one."
1.6 million people say they have quit smoking in the past year, with over a million of these saying they have not used nicotine replacement products in the past 12 months and the remainder having relied on them to some extent.