(Submit Articles) Ex-smokers who took out life insurance while they were still smoking could save a packet on their life insurance premiums by reviewing their cover 12 months after they smoked their last cigarette. In one example one man saved over Ã‚£5,000 by switching his life insurance policy after he quit smoking.
London, UK, September 16, 2010 -- Ex-smokers who took out life insurance while they were still smoking could save a packet on their life insurance premiums by reviewing their cover 12 months after they smoked their last cigarette. In one example one man saved over Ã‚£5,000 by switching his life insurance policy after he quit smoking.
There are around 10 million* ex-smokers in the UK, with around 130,000* giving up in the last year. If they didnÃ¢â‚¬â„¢t think to review their life insurance i many of them could be paying bigger premiums than they need to.
Insurers generally rate customers as non smokers if they havenÃ¢â‚¬â„¢t smoked in the previous 12 months. So even if they once had a regular 40 a day habit, one year later they will be rated as non-smokers and they could pay substantially less for their life insurance, even if theyÃ¢â‚¬â„¢ve put on a few years since taking out their policy.
Savings will differ depending on how long youÃ¢â‚¬â„¢ve had the policy but for someone who took out life insurance 5 years ago as a smoker and has since given up they could reduce their premiums by as much as 60%. This could save them hundreds if not thousands of pounds over the term of the policy.
For example: In 2005 a 44 year old man took out Ã‚£125,000 of level term life insurance for a 20 year term. At the time he was a smoker and his premium was Ã‚£47.76 per month.
Now, five years later, he has given up smoking for over 12 months and although he is five years older he is still in good health and can now get Ã‚£125,000 of level term life life insurance for the remaining 15 years of his original policy for a premium of just Ã‚£18.34 per month. ThatÃ¢â‚¬â„¢s a saving of Ã‚£29.42 per month over the next 15 years amounting to a total cost saving of Ã‚£5265.60.
ThatÃ¢â‚¬â„¢s in addition to the considerable amount of money youÃ¢â‚¬â„¢ll save by not buying cigarettes any more. Someone with a 20 a day habit paying an average of Ã‚£5.20 per pack will find themselves with an extra Ã‚£1898.00 in their pocket each year if they give up smoking.
Ray Black, founder of Money-Minder.com said: Ã¢â‚¬ËœAs well as the obvious health benefits, thereÃ¢â‚¬â„¢s a substantial wealth benefit that is often overlooked. Anyone who gave up smoking over a year ago should look at what it would cost to switch their insurance now they are a non-smoker. The saving could be huge!.Ã¢â‚¬
Notes to Editors:
Example Ã¢â‚¬“ 44 yr old male smoker took out Ã‚£125k of level term life assurance in 2005 for a 20 year term. No waiver of premium. Annual premium of Ã‚£573.12 = monthly premium of Ã‚£47.76. Now aged 49 and a non smoker he takes out Ã‚£125k of level term life assurance for a 15 year term (the remainder of his original 20 year term). As a non smoker his new premium is Ã‚£18.34 per month with Bright Grey Ã¢â‚¬“ a saving of Ã‚£29.42 per month. Ã‚£29.42 x 12 months x 15 years = Ã‚£5295.60. Minus the Money-minder admin fee of Ã‚£30.00 = a total saving of Ã‚£5265.60 over the next 15 years.
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Jason Wyer-Smith at 42 PR on 07824 818242, Email: [email protected]
Ray Black at Money-Minder.com 01529 300300, Email: [email protected]
Money-Minder.com was founded and created by Ray Black, Dip PFS, an Independent Financial Adviser. Money-Minder.com is online personal finance website that incorporates an exclusive and unique interactive comparison service providing free genuinely online quotes and is full of useful information to help customers choose the right cover and product to suit their needs.
The site currently provides comparisons on life and protection products - term assurance, critical illness, mortgage protection and income protection. The siteÃ¢â‚¬â„¢s Ã¢â‚¬ËœFinance NavigatorsÃ¢â‚¬â„¢ help customers to make their own informed choices and decisions but Money-Minder also provides easy access to highly qualified independent financial advisers (IFAs) if required.
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Jason Myer Smith
Money Minder Financial Services (UK) Limited
Church Cottages, Norfolk
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