Does an e-smoker have to pay higher insurance prices like a smoker does?

Do e-cigarrette smokers get treated like regular smokers when it comes to life assurance prices? The smoking status (which is in its strictest form described as having smoked ‘any tobacco in the last 12 months’) varies from insurer to insurer. 

Irish Life: at present someone who uses e-cigarettes (ie no other tobacco-related products) is classed as a non-smoker (Please note this may change in the future).

Aviva: smoker rates

Zurich: rate “e-smokers” at +50%, assuming that they have already been off (tobacco) cigarettes a minimum of 12 months, the reason being the likelihood of these smokers returning to full smoking habit is quite high.

Caledonian: considers anyone smoking tobacco or e-cigarettes, or anyone using nicotine replacement patches, gum etc in the past twelve months to be a smoker. Smoker rates will apply to that client.

New Ireland: classes e-cigarette users as non-smokers, but this is currently being reviewed.

Friends First: smoker rates

Worth considering which company to speak to if you use e-cigarettes!

Read More

Mortgage Protection explained

Housing loan lenders will usually insist on borrower’s  having a Mortgage Protection assurance policy as a form of collateral security.

A mortgage protection is a life assurance policy that will repay the balance of a loan on death during the loan term. This is to ensure that if a borrower dies then his/her dependants will not be forced out of their home because they are unable to continue making the loan repayments. Mortgage protection cover comes in two forms, a: where the borrower is covered by a Group or Block mortgage protection policy effected by the lender. b: where the borrower has an individual mortgage protection policy and this is assigned to the lender.

Read More

Lowering mortgage costs by cancelling life policies?

Caution: I am not advising that anybody breaks their mortgage contract, or does this, it’s just an interesting ‘what if’ because we are seeing more people cancelling their life assurance in order to make ends meet.

When you take out a home loan a standard condition is to have a life insurance policy in place and to have it assigned to the lender. This comes about from S126 of the Consumer Credit Act 1995, and while there are some exceptions as listed in S126(2), the majority of home loans have a policy in place.

When you take it out you then get a deed of assignment, meaning you are paying the policy but the bank is actually the beneficiary. In practice, if you die, the bank gets the insurance policy and if there is any money left over afterwards it goes to your estate.

If you went directly to your bank to get a loan chances are that you have the insurance ‘all in’ where you got sold an own-label product and usually this is lumped in with your monthly …

Read More

Interesting Life Assurance statistics

This is based on research from the Broker/Life Assurance industry, so put on your filters, but nonetheless it is interesting.

1 in every 2 adults (1.6 million people) have NO Life cover or protection of any kind, but 9 out of 10 people admit to needing it.

1 in 5 people (360,000 families) are considering taking out life cover in the next 12 months, but most think it is dearer than it is. Engagement is the big issue – almost 60% of people say they are simply not being asked. On the last point, it seems we have some more phone calls to make!

🙂

Read More