Last-gasp effort to stop smoking

As buyers of a product which blatantly warns “This could kill you”, smokers may not be very moved by Government campaigns showing how wonderful they will feel after stopping. As if “you will taste your food better” is really going to stop a smoker!

 

Health and life insurers can take another tack .A simple but sound one that it can save you money.

 

Some of the nonsense in the popular press could be counter-productive. In general, non-smokers pay less. But most insurers will want proof that a smoker has stopped for 12 months or more.

 

Merry suggestions that a smoker can stop on 30 June and claim no-smoker discounts on Ist July are nonsense. The official definition of a non-smoker is someone who has not consumed any form of nicotine for 12 months.

 

Long term though, a smoker can pay a lot more than a non-smoker for many types of health insurance. A non-smoker pays about half the price of a smoker for life assurance.

 

Lying to your insurer if you are a sneaky smoker trying to cut the cost of life cover could be an expensive mistake. If your insurer finds out, any claim could be rejected for non-disclosure.

 

If you successfully give up smoking, you can also expect to halve any premiums on critical illness cover, which pays out a lump sum if you are diagnosed with one of the medical conditions listed in your policy, or on income protection, which provides a replacement income if you are unable to work due to illness.

 

Stopping smoking might reduce private medical insurance premiums, as some companies will either charge you extra if you smoke, or give you a discount if you do not.

 

WPA charges smokers 10 per cent more on Flexible Health policies, and 50 per cent extra on My Cancer Drugs cover. BUPA and BCWA apply a 5 per cent surcharge for smokers on their Heartbeat and Personal Health policies. AXA PPP surcharges smokers by about 10 per cent on most of its private medical policies.

 

PruHealth will give you hefty discounts if you tick all boxes including not smoking. Standard Life and Norwich Union do not yet take smoking into account in their premiums.

 

After the ban on smoking in enclosed public places takes effect, it is likely to make more insurers increase premiums for smokers, or simply refuse to cover them.

 

The logic is simple. With everything being done to stop people smoking by a law that will be heavily enforced, and lots of help offered, insurers may give up on smokers as a bad risk. Drug addicts have very little chance of buying insurance, and cigarettes are just a drug. Insurers would have every right to feel that they should not insure anyone who so risks their life and health. It is like hanging a big sign around your neck “I do not care about my health or if I die”.

 

So the message to smokers is “Stop now and save money- before you become uninsurable”.