Quit smoking and save on life insurance

Moneyfacts.co.uk has revealed that the price of life insurance is half of what is was 10 years ago.

A price war between insurers and other providers such as supermarkets offering cheaper insurance has meant that life insurance is much cheaper than it was a decade ago.

Car insurance and home insurance may have risen over recent years but according to moneyfacts.co.uk, life insurance premiums have halved.

Non-smokers benefit from cheaper insurance as the average premium for a non-smoking male has fallen by 53% since 1998 while the average cost for a non-smoking female has fallen by almost 48%.

Meanwhile, for those who do smoke, premiums have also fallen. For men, 48% and for women 45%. However, in the last year, smokers’ premiums have increased slightly, suggesting that this might be the end of cheaper cover for smokers.

Commenting on the findings, Richard Eagling, editor of investment life and pensions at Moneyfacts, said longer life expectancy together with growing competition in the term assurance market has pushed prices down to record lows.

However, those who have managed to give up smoking should be aware that insurers insist smokers have kicked the habit for at least 12 months.

According to the NHS Stop Smoking Service, since the smoking ban came into effect on July 1 last year, there has been a rise in the number of people who have given up smoking.

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