Life insurance broker Protect Line releases policy cancellation statistics for first time
Analysis of cancellation data of 10,822 policies from an online broker has revealed that people are 57% more likely to cancel their life insurance policy if they smoke.
Released for the first time, the Protect Line cancellation figures also showed that there is no significant difference between males and females, however age does play a big factor, said the broker.
The age range most likely to cancel their policy is those who get insurance between the age of 18 and 20, the figures showed, with almost 44% of policies affected.
This is concerning because at this age premiums are likely to be far cheaper, so would make good financial sense. "Perhaps young people aren't seeing the benefit as much as those who are older? Does the industry need to treat this age bracket in a different way?" asked Protect Line in light of the data.
The second most likely age range to cancel is those who take out insurance when they're over 60, perhaps due to them struggling to keep up monthly premium payments, which at this age are likely to be significantly higher.
The research showed the more expensive the premium, the more likely someone is to cancel. Of Protect Line's customers who paid less than £10 per month, 19% cancel early; compared to those paying £50 a month who had 36% likeliness to cancel.
David Brewer, Protect Line co-founder and director, described the findings as a "revelation".
"We are a business that is passionate about helping customers through difficult times," he said. "We are investing in understanding why we are seeing this behaviour from consumers."
He added: "Smoker's premiums are often twice those of non-smokers. Our service helps to find the most competitive price available for our customers but ultimately all insurers treat smokers in a similar way."