Ex-Smokers could cash in on New Year’s Resolution

Peavoy Financial Planning talks Savings for Ex Smokers

Financial benefits of quitting smoking

At the start of every year, thousands of people in Ireland make a New Year’s resolution to give up smoking. Those who gave up in January 2021 (and before) and have managed to stick to it, may be able to avail of reduced life assurance, specified illness and income protection premiums.

Statistics from the Healthy Ireland Survey 2021, which was published in December 2021, show that more and more people in the country are trying to kick the habit. The overall number of smokers in Ireland has dropped from 23% in 2015 to 18% in 2021. The report shows that 44% of those who smoked in the previous 12 months have attempted to quit, and that 27% of those attempts have been successful.

The health benefits of quitting smoking can’t be understated, but there are also significant financial benefits as well. Saving the money previously spent on buying cigarettes might easily spring to mind, but the thousands in savings that can be made on Life Cover, Specified Illness Cover and Income Protection might not be so obvious to a lot of people.

Smokers who have managed to give up for more than 12 months and already have life cover in place can potentially avail of a reduction in cost of their premiums. If you are an ex-smoker, we recommend that you get in touch to see if you can avail of cheaper rates and start the New Year by saving money on your insurance policy.

Recent cost analysis from Peavoy Financial Planning Limited reveals the difference in premiums paid by the two groups

Level Term Assurance Life Cover for €300,000

AgeTermMonthly Premium Non- SmokerMonthly Premium SmokerSavings over 25 years
3525 years€20.14€37.48€5,202.00
4525 years€45.92€95.07€14,745.00

Level Term Assurance Specified Illness Cover for €300,000

AgeTermMonthly Premium Non- SmokerMonthly Premium SmokerSavings over 25 years
3525 years€123.77€210.45€26,004.00
4525 years€304.52€543.81€71,787.00

The price differential is quite substantial. Our experience is that, while many people expect smokers to pay more premiums, they don’t actually realise how much more. The Healthy Ireland Survey 2021 found that smoking rates are quite high amongst the 25-34 years age group – 20% of this cohort are smokers – the age at which most people take out life cover or mortgage protection for the first time.

Classification of a non-smoker is based upon total abstinence from any tobacco products in the last 12 months, including e-cigarettes, vapes and nicotine replacement products.

If a person wishes to get the New Year off to a good start by being re-categorised as non-smoker please do make contact with us to find out what you need to do. I can be contacted on 087-2902206 or alternatively by email on .

David Peavoy BA, QFA, LIAP is a Director of Peavoy Financial Planning Limited whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.

Peavoy Financial Planning Limited is regulated by the Central Bank of Ireland

Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning Limited makes no representations as to the accuracy. completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use

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