Life - Articles - Research reveals huge differences in life insurance premiums

 With people making their New Year’s resolutions, research from Sainsbury’s Bank Life Insurance indicates that nearly 2.5 million people are planning to stop smoking in 2014. The supermarket bank advises that kicking the habit could not only be great for their health but also save smokers a small fortune in life insurance premiums.

 The research reveals that for someone aged 30 taking out a policy providing £100,000 for 20 years, the monthly premium is on average 24.5% cheaper if they don’t smoke. Over the lifetime of the policy, they would save around £571. The corresponding figures for someone aged 50 are 51.6% and £6,770.

 Sainsbury's Bank is urging anyone who has given up smoking 12 months ago and who has not used any nicotine replacement products, to review their life insurance right away as they will now be classified as non-smokers and it could significantly save them in insurance premiums – depending on their age and medical circumstances. Its research suggests 9.9 million people gave up smoking more than a year ago, and have not used nicotine replacement products.

 Scott Gorman, Head of Sainsbury's Bank Life Insurance said: “Giving up smoking can be a popular New Year’s resolution and as well as the health benefits, it could also save you a lot of money in life insurance premiums. However, you need to make sure that you have not smoked or used any Nicotine replacement products for at least 12 months to be classified as a non-smoker.”