Due to the detrimental side effects of smoking tobacco, life insurance premiums are considerably higher for smokers. Reviti offers discounts for smokers who decide to quit – but the provider has come under scrutiny.
According to MoneySuperMarket research, smoking increases life insurance premiums by an average of 54%. This has the effect of adding £152.76 per year to an average life insurance policy. According to Cancer Research UK, smoking is the biggest cause of cancer in the world, and the NHS estimates that 16% of all deaths in the UK can be attributed to smoking. This suggests the higher premiums are not unjustified.
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In order to encourage smokers to quit, Reviti offers customers discounts for kicking the habit. Those who stop smoking altogether will receive a 50% discount on their life insurance premium after 12 months. Customers who switch to e-cigarettes can receive a 2.5% discount, while those who switch to a “science-backed smoke-free alternative” can receive a 25% discount.
On paper this offer is promising. It is often extremely difficult for smokers to quit cold turkey, and insurance companies do not usually differentiate between traditional cigarettes and e-cigarettes. However, this is also where Reviti is generating controversy. Currently, the only science-based smoke-free alternative that qualifies for a 25% discount on premiums is the IQOS heated tobacco product. IQOS is manufactured by Phillip Morris International (PMI), the largest tobacco company in the world – and Reviti is part of PMI.
Offering premium discounts for individuals who quit smoking is a win-win for both parties. Customers benefit from a healthier life while insurers reduce the risk they carry. But a tobacco company selling smokers life insurance will undoubtedly be viewed in the wrong way, especially when it offers a larger discount to those who use its own-brand products.
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