New Year’s resolution that could mean thousands in savings

As the New Year rolls in and resolutions are made, Royal London Ireland reminds smokers that quitting can lead to substantial savings—potentially thousands of euros each year—on life insurance. Over a typical 25-year policy, these savings can add up to tens of thousands, depending on age and amount of cover. 

New figures from a recent cost analysis conducted by one of Ireland’s leading life insurance and pensions companies Royal London Ireland, show that smokers could cut the cost of their life insurance premiums by as much as 50pc if they successfully quit the habit for twelve months or more (see Tables below). 

According to Barry McCutcheon, Protection Proposition Lead at Royal London Ireland,

“Quitting smoking not only improves your health but can also significantly cut your life insurance costs. If you’ve been nicotine-free for over a year, contact your insurer to ensure you’re benefiting from lower premiums.”

According to Royal London Ireland cost analysis, a 44-year-old smoker could save €731 on premiums a year for a 25-year term €300,000 life insurance policy, or a total of €18,279 over 25 years, by successfully quitting the habit. If the same individual had specified serious illness cover of €300,000, they could save €2,920 a year, or €72,990 over 25 years, on premiums.

Royal London Ireland Cost Analysis

Level Term Assurance Life Cover ^

^ Best Advice as at 05/12/2025. Figures are the Royal London Ireland premiums. Age refers to age next birthday. Sum assured is €300,000.

Specified Serious Illness Cover ^

^ Best Advice as at 05/12/2025. Figures are the Royal London Ireland premiums. Age refers to age next birthday. Sum assured is €300,000.

E-cigarettes

With the rise in e-cigarette use, many vapers may not realise they are still considered smokers by insurers and could be paying higher premiums as a result. It’s important to understand that quitting all nicotine products—including e-cigarettes—can lead to significant savings.

About one in twelve (8%) adults now use e-cigarettes[1] daily, up from one in 33 (3%) using them in 2016[2]. E-cigarette usage is highest among younger people, with 18% of those aged 15-24 claiming to use one daily (11%) or occasionally (7%).

Barry McCutcheon explained:

“The sharp rise in e-cigarette use in Ireland, especially among young people, is a growing concern. E-cigarettes are not risk-free and it’s vital that people understand the health and financial implications of vaping just as much as tobacco use.”

“Vaping is often considered a tool to help quit smoking and the stats show that one in three people have used at least one quitting aid – such as e-cigarettes, nicotine patches, gum, or nicotine pouches - during their most recent attempt to quit smoking[3]. But there is a real danger that e-cigarette users mistakenly believe that their use of e-cigarettes means they won’t be deemed a smoker when seeking or renewing life insurance – and that they’ll avoid higher smoker premiums as a result. This is not the case.”

Barry McCutcheon concluded,

“Following Budget 2026, the cost of a packet of 20 cigarettes increased by 50c, bringing the price per pack to an eye watering €19[4]. The cost of vaping products also increased significantly. Aside from the evident day-to-day cost savings that can be made from not buying cigarettes or e-cigarettes, those who quit could also save themselves thousands of euros on their life insurance premiums. And, of course, quitting brings substantial health benefits—including a longer life expectancy and a reduced risk of heart disease and cancer.”

[1] According to the Government’s Healthy Ireland Survey 2025[1]
[2] As per page 15, Healthy Ireland Survey 2016
[3] As per page 18 of Healthy Ireland Survey 2025
[4] For the more popular cigarette brands

ENDS 

Appendix

When it comes to being classified or re-classified as a non-smoker on your life insurance, Royal London Ireland states that an individual must have completely abstained from all nicotine and tobacco products in the past twelve months. This abstinence requirement includes the use of e-cigarettes, and vapes, as well as nicotine replacement items such as nicotine patches, lozenges, sprays or chewing gum. Additionally, there should be a commitment to continue to abstain in the future.

As well as providing some health-related information, it’s possible that your insurance provider may ask you to complete a cotinine test (smoker test) when buying or renewing cover. This is a simple test which involves screening a sample of saliva or urine for tobacco use. Once re-classification as a non-smoker is confirmed, your insurer will usually reduce your life insurance premium to reflect that of a non-smoker.