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Smokers Urged To Cough Up The Truth

Life Insurance: Smokers urged to cough up the truth – April 4, 2008

Life insurance companies are increasingly checking if claimants are truly non-smokers, and turning down claims for those failing to prove they are smoke-free.

Analysis from shows non-smokers enjoy much lower life insurance premiums – proving a solid incentive for smokers to lie on forms to reduce the cost of cover.

A 25-year female smoker faces life insurance premiums of £11.20 a month, while a non-smoker can pay from £7.50 a month.

Meanwhile a non-smoking 40-year-old male will pay £49.26 per month for critical illness cover (CIC) and a 40-year-old smoking male £93.78.

However, smokers are being warned if they die of a smoking related illness and their insurer thinks they are a non-smoked there will be no pay-out.

Ian Durrell of Onlyinsurance said: “Smokers who declare they have given up but continue to smoke, no matter how infrequently, will be paying for nothing should they die from a smoking related condition.

“The policy simply won’t pay out and their beneficiaries will be the losers.”

To be classed as a non-smoker, for life insurance you need to be fag free for 12 months – over which time you would be £2,016 a year better off through not buying cigarettes.

“Smokers will pay twice the price for critical illness cover than a non-smoker – it’s a no win situation for the smoker, their nicotine addiction is tightening both their heart and purse strings,” concluded Mr Durrell.

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