If you have a dangerous job or a risky hobby, it’s likely you’ll set off red flags with insurers. But, what about your lifestyle habits, such as whether or not you smoke occasionally, or all the time?
Canstar has analysed how much more males and females who smoke pay in direct life insurance and direct income protection premiums based on policies on our database, as well as how career choice and age can influence your ongoing costs. On average smokers can expect to pay 81% more than an equivalent non-smoker for direct life insurance, and 26% more than an equivalent non-smoker for direct income protection insurance.
With more than half of Australian smokers who want to quit keen to cut costs, Canstar crunches the numbers on how much more expensive life insurance and income protection premiums are on average for smokers, with breakdowns based on the policyholder’s age, sex and occupation.
Life insurance costs: smokers v non-smokers
Cost is a factor for many Australians who smoke, and it’s a big reason why some are eager to quit. For example, pack-a-day smokers who spend $21 on cigarettes daily are out of pocket upwards of $600 a month, and over $75,000 over ten years, according to icanquit.com.au. But smoking can mean incurring other increased costs, including when it comes to life insurance premiums.
Do male or female smokers pay more for life insurance?
Australian male smokers, particularly older Australian men, pay much more than Aussie female smokers in direct life insurance premiums each month. For example, a female smoker in her twenties pays on average $52.57 in monthly premiums, while male smokers in the same age bracket pay $77.62 per month, on average.
Does age impact direct life insurance costs for smokers?
The impact of smoking on direct life insurance premiums becomes more pronounced the older the policyholder becomes, contributing to the potentially high cost of smoking as a lifestyle habit over time. According to Canstar’s data, a male smoker in his twenties pays an extra $29.25, on average, each month compared to a non-smoking male of similar age. By his forties, a male smoker on average pays $85.07 extra in premiums each month, and by his late fifties, the difference is $280.80 monthly.
Does occupation impact income protection costs for smokers?
When it comes to careers, what you do for a living – and how much risk is involved – will impact your life insurance premium, according to Canstar research. This is the case for both smokers and non-smokers.
Using the example of policyholders in their 30s, the table below shows that, on average, direct income protection premiums are highest for truck drivers and lowest for people who work in accountancy, across both sexes and regardless of smoking status. On average, women pay more than men for direct income protection across occupations analysed by Canstar. In fact, a female in her thirties who does not smoke pays more in monthly premiums than a man in his thirties in the same line of work who does smoke, across all of the professions analysed.
Will life insurance pay if I smoke?
Life insurance may still pay if you smoke cigarettes. According to life insurer TAL, “generally, the same cover is available for smokers and non-smokers”. However, if you are classified as a smoker, your insurer will likely charge an extra amount, known as a loading, that makes your regular premium more expensive.
You can read the whole article at Canstar ..
Support to quit smoking
The Australian Government Department of Health offers advice on quitting methods such as going cold turkey, gradually cutting down, nicotine replacement therapy (NRT) and prescription medications. The My QuitBuddy app is available to encourage Australians to quit smoking and the Quitline hotline can be contacted on 13 QUIT (13 7848), to talk to a counsellor or request a callback.
Quit smoking programs are also often offered as part of health insurance extras cover. Australian Unity offers cover for eligible members who participate in approved Quit Smoking programs, for example, while Bupa offers a NRT benefit for eligible members as part of its health management extras service.
