Resolution: Quit smoking and save big on life insurance
A healthy change could save you 75% or $2,000 on annual life insurance premiums
Tis the season for resolutions and if quitting smoking is one on yours, you will not only be doing your health a big favor – you could save a bundle on your life insurance premiums.
According to a recent analysis of Nationwide life insurance customer data, roughly 10 % of Nationwide life insurance policyholders are tobacco users. While less than 1% of tobacco users get denied a life policy, tobacco users are charged significantly more for life insurance. In fact, depending on product and face amount, tobacco users pay on average 75% more or about $2,000 more annually in life insurance premiums than non-users.
“We want to encourage tobacco users to make a healthy change and one of many incentives is potentially saving a lot on their life insurance policy,” said Holly Snyder, President of Nationwide’s life insurance business. “In some cases, an applicant may reapply after quitting tobacco for two years and potentially go from tobacco to non-tobacco rates.”
While the fresh start of a New Year provides optimism, quitting smoking is difficult. For best success, surround yourself with people who support you and boost your confidence. You can also join smoke-free communities on your favorite social platform and leverage online resources such as Smokefree.gov and free quit counseling at 1-800-Quit-Now.
There are also apps you can use called commitment contract tools like Beeminder or Stickk where you can put money or something else you value on the line. You can gradually increase what you risk and if you fail the money goes to an individual or charity you either love or perhaps hate.
“Smoking is costly in so many ways,” Snyder adds. “The new year is a great time for everyone to understand how healthy choices can impact their wealth and how life insurance can protect their lives and families.”