Life Insurance - Smokers and Overweights pay over 50% more!

Summary: The cost of Life Insurance is going up for smokers and those of us who are overweight. This article explains who is affected.

The life insurance industry is becoming tougher on smokers and those of us who are overweight. When an insurance company calculates its premiums, it has to work out the risk of you dying whilst the policy is in force. (Or with Critical Illness Insurance, the risk that you will become critically or seriously ill during the policy's term.) In this context, smoking and obesity have become increasingly important issues. The life insurance industry pointedly ignores the views of some Pro Smoking Pressure Groups which argue that smokers under the age of 40 have around the same probability of dieing as non smokers. David Pickett, Life Insurance Manager at Sainsbury's spoke for the insurance industry when he confirmed "Health risks associated with smoking can have a big effect on life cover costs. It is vital for those who have kicked the habit to review their policies". Just how big an effect smoking has on life insurance costs was highlighted in a recent snapshot study by www.express-life-insurance.co.uk. This found that the average smoker paid 56% more than a non-smoker. The study was based on nine of the UK's top insurance companies and examined the premiums quoted for two men aged 30 asking for