We're not being insensitive,
honestly! We're talking about your last gasp of smoke – have you given up
smoking recently?
Did you know that smokers paying up
to 60% more for their life insurance cover compared to non-smokers. So, besides
the health dividend and the money saved on cigarettes, insurance companies will
chip in with lower life insurance premiums. And the insurance savings aren't to
be sneezed at! A typical policyholder could save at least £10 or more per
month.
With most insurance companies, you qualify for non-smoker premium rates if you haven't smoked or otherwise used nicotine products, within the last five years. Now five years is a long time to wait for the extra spending money if you've only recently given up smoking. However, people in the know have pointed out a way to speed things up.
They point out that some insurers
have adopted a more relaxed definition of a non-smoker. Some insurers have
shortened the 5 year smoke free period to just twelve months. So if you haven't
smoked for a year, find out how much you can save by moving your life insurance
to one of these insurers. But be careful. You must never cancel your existing
policy until you've received written acceptance from the new insurer.
How do find the right insurer?
First go onto Internet because
that's the best way to find cheap insurance. Then search for a life insurance
broker that fulfils three criteria:
The broker must search the whole insurance market for the lowest price – this means that they will find the cheapest insurance company for you.
The broker must be prepared to discount the prices – they achieve this by rebating some of their commission back into your policy. That ensures you get a really cheap quote.
They'll phone you with the quote and
provide further help – this is essential as the chances are that the price they
will initially phone you with, will be from an insurer using the a five-year
smoking definition. You have to tell them that you need the cheapest quote from
a company using the twelve-month smoking definition . That means they'll have
to call you back after doing some digging.
If you use a web site that provides
an immediate on-screen quote, you won't know whether the quote provided comes
from an insurance company that uses the 5-year or 12-month smoker definition.
Online systems never tell you. That's why you need to be able to speak to a
life insurance adviser on the phone so you can explain what you need. Of
course, to be able to be able to make a direct comparison with your existing
policy you need to get a quote on an identical policy that terminates in the
same year as your existing policy.
Once you've got the right quote, you'll be able to see much you're likely to save. So if the price looks right, make a full application.
One of the main aspects that will
affect your premium is your age. Therefore, if your existing policy was bought
some years ago, the savings could be less than the 60% we have indicated.
However, life insurance is one of those things that's become cheaper over
recent years - so until you get the figures in front of you, the savings are
hard to predict. You'll just have to get a quotation and find out! As all the
brokers we know are only too pleased to provide free quotations without any
obligation, you've nothing to lose and possibly lots to gain.
After finding a cheap quotation from
an insurer with the 12-month smoker definition, you'll have to complete a full
application form. Be sure to read every question carefully and answer all the
questions fully and honestly. Far too many people try to ensure they qualify
for a low premium by being “economical with the truth”. Don't be tempted. If
there is a claim, the insurer will recheck the information you provide, even if
it's many years later.
Over the last few years insurance
companies have become more choosey about whom they accept on standard insurance
terms – that's the first price you were quoted. The company's selection rules
about health and weight have become far tougher resulting in more clients having
their premium loaded. That's why you must not cancel your existing life policy
until you've got a final acceptance notice at a price that gives you the
savings you're looking for.
Whilst the process to switch a policy may sound a little daunting, it isn't really too bad. Just think of the money you'll save! Just reward for the stress of giving up smoking.