If you gave up smoking at least a year ago, this article will help you save lots of money on your life insurance. Essential reading.
- Did you know that smokers paying up to 60% more for their life insurance cover compared to non-smokers
- So, besides the health dividend and the money saved on cigarettes, insurance companies will chip in with lower life insurance premiums
- A typical policyholder could save at least £10 or more per month
- However, most insurance companies will only qualify people who've given up smoking as non-smokers after 5 years which is no good if you've just given up
- But people in the know have pointed out a way to speed things up
Search Out Companies That Qualify Non-Smokers After Just One Year
Some insurance companies are now adopting a more relaxed definition of a non-smoker and have shortened the 5 year smoke free period to just twelve months. So if you haven't smoked for a year, find out how much you can save by moving your life insurance to one of these insurers.
But how do find the right insurer?
- First go on to Internet because that's the best way to find cheap insurance
- Then search for a life insurance broker that fulfils three criteria:
- The broker must search the whole insurance market for the lowest price - this means that they will find the cheapest insurance company for you
- The broker must be prepared to discount the prices - they achieve this by refunding some of their commission back into your policy. That ensures you get a cheap quote
- Chances are the first quote will be from a company using the 5 year rule so make sure you ask them to only quote from companies using the more relaxed 12 month period
If you use a web site that provides an immediate on-screen quote, you won't know whether the quote provided comes from an insurance company that uses the 5-year or 12-month smoker definition. Online systems never tell you. That's why you need to be able to speak to a life insurance adviser on the phone so you can explain what you need. Of course, to be able to be able to make a direct comparison with your existing policy you need to get a quote on an identical policy that terminates in the same year as your existing policy.
Once you've got the right quote, you'll be able to see much you're likely to save. So if the price looks right, make a full application.
Summary
A little knowledge can go a long way in the personal finance world as this tip has shown for those who have given up smoking (well done by the way). The secret with this strategy is to always use an insurance broker.
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