Norwich Union advises giving up smoking could lower life insurance costs

Today is No Smoking Day and Norwich Union advise that giving up smoking could dramatically lower life insurance premiums.

People who manage to stop smoking for 12 months and continue not to smoke are then classed as non-smokers.

Apply for life insurance as a non-smoker and it means your monthly premiums could be cut by almost half compared to those for a smoker.

Head of protection at Norwich Union, Louise Colley, said ‘People who smoke have an increased risk of heart disease, breathing disorders and certain cancers, to name but a few illnesses, which is why non-smokers often pay significantly less for life insurance and critical illness policies. So bearing in mind both the health and monetary benefits, No Smoking Day could be the perfect day to stop.’

As an example, using Norwich Union life insurance prices as at 9 March 2009, a joint policy for a non-smoker female and male, both 30 next birthday would pay £23.62 for 30 year level term assurance, sum assured £125,000, with reviewable critical illness cover.

As smokers the same joint life insurance policy would cost £37.62 per month, over 60% more per month.

Giving up smoking certainly seems attractive!

For reference, term assurance pays an agreed lump sum on death, or critical illness if selected, within the term of the plan.

Norwich Union will change its name to Aviva in the summer of 2009 as Aviva becomes the insurer group brand worldwide.