1 in 5 smokers lie to save money on life insurance

Peter Terlato 12 September 2016

Are you a smoker

Monthly premiums double for those that light up.

New research has revealed that almost one in five Australian smokers would lie on their life insurance applications about their nicotine habit in order to save money on their policy premiums.

Analysis from finder.com.au show 19% of smokers would not tell their insurance company they smoke because they may be forced to pay over two times as much for their monthly premiums, compared to non-smokers.

For example, monthly premiums for a 35-year-old male non-smoker would be $40-$48 on an $800,000 life insurance policy, compared with $81-$97 for a smoker.

Use finder.com.au's life insurance calculators to determine how much coverage you need.

The survey of more than 2,000 Australians shed light on some interesting smoker demographics.

Gen Y smokers were almost twice as likely as any other generation to lie in order to keep their life insurance premiums at a reasonable level.

Of those surveyed, 34% of Gen Y admitted they would deceive their insurers, compared with just 18% of Generation X and only 8% of Baby Boomers.

South Australians were the most likely to lie about their habit on their insurance policy, while those in the Australian Capital Territory (ACT) were most honest.

Women (20%) were only slightly more likely than men (18%) to fib about smoking in order to save cash on life insurance.

Insurance companies don't differentiate smokers by the amount they inhale. If you've smoked at all in the last 12 months, your premiums will reflect this.

Individuals caught lying about their smoking status can be ineligible to make a claim or have their entire policy disqualified.

Once a smoker quits, life insurance rates will return to basic levels after one year.

The Department of Health warns 15,000 Australians die as a result of smoking each year, totalling $31.5 billion in social and economic costs.

If it's been your new year's resolution to quit smoking, compare different ways to kick the habit.

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