Consumers could save between €595 and €5,000 over the term of a life insurance policy by shopping around and quitting smoking, according to the latest survey by the Financial Regulator.
The survey covers the monthly costs for life and mortgage protection insurance for people of different ages, both smokers and non-smokers.
Based on the monthly life insurance costs shown in the survey, people could save between €595 and €5,000 over the term of the policy.
Comparing the most extreme examples at each end of the scale the survey finds that the monthly costs for a 28-year old taking out a €200,000 policy over a 35-year term range from €15.65 a month for a female non-smoker to €45.83 a month for a male smoker. The total difference in payment over 35 years for this example is €12,675.
Smokers pay considerably more for life insurance than non-smokers. A €250,000 mortgage protection insurance policy will cost a 26-year old female smoker on average almost €2,600 more than a non-smoker of the same age. Men in this category will pay an average of almost €3,200 more if they smoke.
While smokers pay more for life insurance, there are still significant differences in the rates for smokers. A 38-year old male smoker could save over €11 a month for a €300,000 mortgage protection policy. This adds up to over €3,400 over the term of the policy.
Consumer Director, Mary O'Dea said, "At this time of year, many people think about their personal finances. One of the things you might want to consider is whether you need life insurance, or indeed, if you have enough life insurance. Our survey gives you an idea of who might need life insurance the most, depending on personal circumstances."
She added, "If you are thinking about taking out a mortgage this year you will probably be offered mortgage protection insurance by your mortgage lender.
"While this may be a discounted rate for the first few years, it is worthwhile looking at our survey to see who offers the best mortgage protection rates to make sure you are getting the best deal you can. Remember, you do not have to buy your mortgage protection insurance from your mortgage lender."