Quitting smoking and vaping could save individuals and couples tens of thousands of euro over the lifetime of a mortgage protection, life insurance, and specified illness policy.
Vapers are also being warned about the financial consequences of their habit, according to new research from price-comparison site and brokerage firm Bonkers.ie.
The research also shows the importance of shopping around, even for non-smokers.
Ahead of World No Tobacco Day tomorrow, smokers are being encouraged to quit: not just for their health, but for their wallets too.
The research showing that the cost of life insurance is almost double for smokers was carried out this month by comparing prices for smokers and non-smokers from the country’s five leading life insurers: Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life.
As well as being a price-comparison and switching website, Bonkers.ie is a broker for both life insurance and mortgages.
Smokers would pay at least €192, a difference of almost €33,000 over the term
When it comes to mortgage protection insurance, a 38-year-old couple could pay as little as €35.60 a month for €300,000 in cover over 30 years if they are both non-smokers.
But if both are smokers, the cost jumps to €70. Bonkers said this is an increase of almost 97pc, or nearly €12,500, over the life of the policy.
Mortgage protection cover is a legal requirement for anyone taking out a mortgage in Ireland.
Adding €100,000 in specified illness cover to the same policy would cost €101 a month for non-smokers. But smokers would pay at least €192, a difference of almost €33,000 over the term.
The gap is even wider for life cover. Life cover pays out a tax-free lump sum if one of the insured dies during the term of the policy and is considered an essential part of financial planning for families.
Vapers are treated the same as smokers by life insurers. Photo: Getty
A non-smoking couple could secure €300,000 in cover over 30 years for around €51 a month, while smokers would pay at least €104. This is a difference of almost 103pc, or almost €19,000 over the lifetime of the policy.
And for a standalone specified illness policy, worth €150,000 over 30 years, non-smokers would pay €195.87 a month. Smokers would be charged €333.44 – almost €50,000 extra over the full term.
While smoking has declined in recent decades, about 16pc of people aged 15 and over in Ireland still smoke either daily or occasionally, according to Census 2022.
Daragh Cassidy of Bonkers.ie
However, many more vape. Daragh Cassidy of Bonkers.ie said vapers, even if they have never smoked in their life, will still be treated as smokers by life insurers.
World No Tobacco Day is on May 31 every year. It is an awareness day created by the World Health Organisation (WHO) to highlight the health risks associated with tobacco use.
Mr Cassidy said: “Quitting smoking really is good for your pocket as well as your health. It’s not just the cost of cigarettes that you’ll save on. As our research shows, the price you pay as a smoker for important life insurance products such as mortgage protection, term insurance, specified illness cover and income protection is often close to double what a non-smoker would pay.
“This means kicking the habit can save you tens of thousands of euro over the lifetime of these products.”
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