National non-smoking day, 10 March, is fast approaching, but it is not all bad news for smokers, as the Annuity Bureau is keen to point out.
It is urging proven smokers to take advantage of providers still in the business of offering better annuity rate deals, on the basis of their statistically shorter lives.
The objective is not to encourage people to take up smoking in order to obtain better rates, the Bureau stresses, but to inform such consumers they should be aware of the options.
Research suggests fewer than 10% of those who could qualify are searching out such deals, the Bureau says.
Because smokers die on average five years earlier than non-smokers, insurers are able to pay out higher rates – smokers being defined as those with an average intake of 10 cigarettes per day over 10 years.
The temptation to take up smoking for a brief period simply in order to maximise annuity rates is tempered by the standard clause covering the provision of false information in an application, plus some random testing that may go on, the Annuity Bureau adds.IFAonline
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