Will stopping smoking affect life insurance premiums?

Will stopping smoking affect life insurance premiums?

We were approached by an existing client.  He wanted us to review his life insurance because he had recently passed his first anniversary as a non-smoker, and wondered if giving up smoking would have an effect on his premium?

He was also a type two diabetic, although we had previously sourced the best cover available to him at that time.  The main issue here was what effect would his new non-smoker status have on his premiums?

His existing policy provides cover of £215,000 over a 15-year term (until he reaches the age of 68) and his monthly premium is £166.  We discussed his requirements and agreed that cover to age 68 was not ideal, so he wanted to look at the cost of cover which would take him up to his 75th birthday, as well as increasing the sum assured to as much as he could whilst paying a similar premium to the one he already pays.

Had he still been a smoker we could have arranged him only £154,000 of life cover over the 22 years he wanted. However, as he has been a non-smoker for over 12 months, we managed to arrange £358,000 of cover over 22 years for £170 per month. This gave him an extra £143,000 of cover for a further 7 years.

Our process and advice

At Future Proof, we have access to specialist insurance companies who don’t deal directly with the public. These companies offer more specialised policies, designed to provide cover where other major providers can’t.

Our research process involves us contacting many insurers to find out the best possible outcome for our clients. Which avoids any nasty shocks later on during the underwriting process.

Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk). Or, exclude a condition?

Might they decline the application? We want to avoid wasting time by making applications which may be declined.

We have up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK and are committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs.  You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.

All our case studies are based on actual client scenarios, many of which pre-date 2020.  We are confident that the acceptance decision made by the insurers would still be offered. Although it is likely that the rates will have changed, your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

Links to third-party websites exist for information only, and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.

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