With a number of people seeking to make changes in 2017, AA Ireland is highlighting that the decision to quit smoking can help you make significant savings on your life insurance in the long run.
While quitting would save the average smoker approximately €2000 annually as a result of no longer purchasing cigarettes, permanently quitting could lead to even more savings.
An analysis of AA Life Insurance customers found that smokers pay on average 90%-100% more than non-smokers for cover. However, with the majority of insurers an ex-smoker will be classified as a non-smoker if they have maintained a tobacco-free lifestyle for a period of at least 12 months.
Meanwhile, in good news for users of e-cigarettes, vaping is unlikely to have any impact on the cost of life insurance.
Recent analysis from Healthy Ireland highlighted that 32% of those attempting to give up smoking used e-cigarettes as a quitting aid. Currently those that vape but do not use tobacco are rated as non-smokers by AA Life once they have been tobacco free for more than 12 months; although other insurers may take a different view. However, even if an ex-smoker is in the process of quitting, lying about their past tobacco use may have a negative impact on their policy.
A 2016 report from AA Life Insurance found that as many as 4 in 10 smokers had lied about their habits when applying for life insurance.