Life Insurance Articles
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.
Life Insurance Take a last gasp and count the savings!
Emma Mayo 03/06/05
We're not being insensitive, honestly! We're talking about your last gasp of smoke have you given up smoking recently?
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. And the insurance savings aren't to be sneezed at! A typical policyholder could save at least £10 or more per month.
With most insurance companies, you qualify for non-smoker premium rates if you haven't smoked or otherwise used nicotine products, within the last five years. Now five years is a long time to wait for the extra spending money if you've only recently given up smoking. However, people in the know have pointed out a way to speed things up.
They point out that some insurers have adopted a more relaxed definition of a non-smoker. Some insurers 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 be careful. You must never cancel your existing policy until you've received written acceptance from the new insurer.
How do find the right insurer?
First go onto Internet because that's the best way to find cheap insurance. Then search for a life insurance broker that fulfils three criteria:
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.
After finding a cheap quotation from an insurer with the 12-month smoker definition, you'll have to complete a full application form. Be sure to read every question carefully and answer all the questions fully and honestly. Far too many people try to ensure they qualify for a low premium by being economical with the truth. Don't be tempted. If there is a claim, the insurer will recheck the information you provide, even if it's many years later.
Over the last few years insurance companies have become more choosey about whom they accept on standard insurance terms that's the first price you were quoted. The company's selection rules about health and weight have become far tougher resulting in more clients having their premium loaded. That's why you must not cancel your existing life policy until you've got a final acceptance notice at a price that gives you the savings you're looking for.
Whilst the process to switch a policy may sound a little daunting, it isn't really too bad. Just think of the money you'll save! Just reward for the stress of giving up smoking.
Best of luck.
Readers please note : You should undertake your own background checks before taking any action on any aspect mentioned in this article. Where the author has mentioned specific product details or given examples of how companies have reacted to specific situations, these should be correct as far as the author is aware when this article was written. In some cases additional background information not mentioned in the article has been used in obtaining the examples. Some examples or quotes may have been taken from information available in the public domain where all the background details may not be available. Insurers do change policy conditions and underwriting approach. They will view each situation on its own merits.
You should be aware that details of the topics written about within the articles can change. Therefore, always check out the current position before taking any action. You should also check that any action you are considering, or any proposed purchase, is suitable for your personal circumstances.This article represents the author's personal views and is not necessarily endorsed by this web site. These articles should not be construed as this web site recommending any product or service.