According to recent life assurance research by Sainsbury’s Bank, many ex-smokers could be paying too much because of their life insurance coverage. They assert that during the past 5 years approximately 6.78 million people have given up smoking, however just a quarter of these folks have informed their life insurance company.
Time requirements differ between insurers; however, many companies look at a person to no more be classed as a smoker after twelve months following quitting. By contacting their insurance carrier former-smokers can get themselves re-classed as a ‘non-smoker’ and potentially saving a lot of money over the term of their policy.
According to their estimates, which means that there are up to 2.2 million ex-smokers who could possibly be wasting at the very least L126.72 million simply by not reviewing their life insurance coverage requirements to show their healthier status and reflect they are no longer a smoker.
David Picket, the life insurance manager of Sainsbury’s Bank said, “Medical benefits of quitting are well known, sufficient reason for a packet of cigarettes now costing over L5, the financial savings can be substantial. However, once you have successfully quit, you might create a saving in your annual life insurance coverage premiums if you review the needs you have.”
Most policies require ex-smokers to possess given up permanently in fact it is possible that even a couple of cigarettes in the pub on a Saturday night can consequently invalidate cover; however there may be big savings available (over 30%) for those who have completely quit. But despite the potential savings that are available, most people do not want to update their life insurance coverage policies and so lose out.
Over the last couple of years, increases in the amount of competition, has lead to large reductions for potential policy holders, with basic term life insurance policies now costing less than L5 per month for a and healthy non-smoker.
Life insurance coverage comparison site Moneynet has good news for existing policy holders too, “When you have existing Life Insurance Policies that have been taken out a while ago it could be worth taking into consideration a change. Most Life Companies have considerably reduced their premiums over the last few years to take account of longer life expectancy and the advances in medicine.”
The costs of life insurance can vary significantly dependant on age, lifestyle and occupation, along with between different life insurance providers, as not absolutely all providers evaluate the degrees of risk to be insured just as. The ease with which it is possible to check the difference in insurance premiums between providers through the financial information site The Motley Fool, Moneynet, or countless others that have sprung up lately, has also lead to increases in public areas knowledge and competition within the further driving down the costs.
While the news is apparently good all round for consumers it must be noted that as with all financial decisions, changing protection plans can be complex because the number of providers and various products increases and the costs of making the incorrect decision could prove serious. It ought to be noted that degrees of cover can vary widely and therefore a specialist independent financial advisor ought to be sought if in any doubt regarding a products suitability.
All information contained in this short article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.
You’re strongly advised to take appropriate professional and legal advice before getting into any binding contracts.