bonkers.ie research reveals the huge extra cost of life insurance for smokers

If you're a smoker you probably don't need yet more reminding that it's not great for your health.

But it can also have a huge negative impact on your wallet too – not just due to the cost of a packet of cigarettes.  

Research we've conducted to coincide with World No Tobacco Day shows smokers can expect to pay around TWICE as much as non-smokers for important life insurance products like mortgage protection, term insurance, income protection and specified illness cover — potentially adding up to tens of thousands of euro over the life of a policy.

So if you've been trying to kick the habit, this might be the kick you need!

Here's a look at some of the research in more detail...

The (very real) cost of smoking

Let’s take a 38-year-old couple, which is around the age people in Ireland now buy their first home. And it’s also the time many start thinking about other forms of protection for themselves or their families.

• For a €300,000 mortgage protection policy, which is a requirement to get a mortgage in Ireland, a non-smoking couple could expect to pay as little as €35.60 a month for a 30-year policy. But if both smoke, the premium jumps to €70.09 — an increase of almost 97%, or nearly €12,500 extra over the term. 

• Add €100,000 in specified illness cover to the same policy, which provides a tax-free lump sum if you're diagnosed with a serious illness, and the cost for smokers rises to €191.82 a month, compared to €101.09 for non-smokers — a difference of almost €33,000 over the lifetime of the policy.

• For standard term insurance or life cover (which pays out a tax-free lump sum if one of the policyholders dies), a €300,000 policy over 30 years would cost €51 for non-smokers, or €103.88 for smokers — nearly €19,000 more.

• And a standalone specified illness policy worth €150,000 over 30 years would cost €195.87 a month for non-smokers, but €333.44 for smokers — almost €50,000 extra in total.

Vapers beware!

It’s not just smokers who should take note. Vapers, even those who’ve never smoked a cigarette in their life, are treated the same as smokers by life insurers. That means the same elevated premiums apply.

And those looking to apply for a mortgage over the next year or so should take note too. 

In order to get a mortgage in Ireland you must also have mortgage protection, which pays off the outstanding balance of your mortgage to your lender in the event of your death. 

Many people often find getting mortgage protection more cumbersome than getting the mortgage itself. But if you're a non-smoker, you’ll be fitter and healthier. It'll generally be easier and quicker to get a mortgage protection policy in place and therefore the keys to your new home. And as our research shows, it’ll be much cheaper for you too.

All quotes include a 1% Government levy and assume standard rates. Policyholders may have to undergo a medical exam. Prices quoted for income protection are before tax relief has been applied. The research was carried out in May by comparing prices on bonkers.ie for smokers and non-smokers from the country’s five leading life insurers: Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life.

Why it matters

Whether you’re thinking of applying for a mortgage, reviewing your cover, or just thinking about your financial future, this research is a powerful reminder: quitting smoking (or vaping) doesn’t just improve your health — it can also massively reduce your insurance costs.

And even if you already have cover in place, there’s good news. After 12 months smoke-free — and nicotine replacement-free — you can apply to be reassessed as a non-smoker, potentially unlocking far cheaper premiums.

A final tip: always shop around

Even for non-smokers, premiums can vary hugely between providers. That’s why it’s important to compare the market, and not just settle for the first quote you receive. And remember, if you're getting a mortgage, you don't have to get your mortgage protection from your bank or lender. You're free to shop around.  

And that's where bonkers.ie can help!

We’ve built an award-winning, digital-first broker service that makes getting cover quick and easy. Our service is completely free for consumers and there are no hidden fees or surprises. 

We work with all five of Ireland’s leading life insurers — Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life — to help you get the best deal possible.

We use the latest technology to make the entire application process as seamless as possible. And in some cases, we can even get you covered in under one hour!