E-cigarettes could cut insurance costs for smokers. The UK’s favorite electronic cigarette – is supporting calls for life and health insurance premiums to be reduced for smokers who have switched from traditional tobacco cigarettes.

It follows the announcement that Manchester-based Sutton’s Independent Financial Advisers is offering e-cigarette smokers up to a 40% reduction in life and health insurance premiums.

Harvey Sutton said: “All insurers ask questions about tobacco use and many, but not all, ask specific questions about nicotine. We sought situations where e-cig users could honestly answer questions relating to their use of tobacco products.

“Electronic cigarettes are not tobacco products. We spoke to the underwriters in question: we are not doing this without underwriters’ knowledge.”

Although policies have been successfully secured for a number of clients, there are further talks needed before the practice can be rolled out nationally. As insurers are increasingly urged to ask clients about smoking and other harmful behaviour, it is thought the change in practice could involve additional tests to check for tobacco damage.

Nicolites managing director Nikhil Nathwani said: “At present, those looking to take out a policy are often tested for nicotine use, which would not distinguish between tobacco and e-cigarettes.

“Here at Nicolites we are urging the Association of British Insurers to reassess policies across the board, providing consumers with a policy which truly reflects their life style.”

He added: “It is estimated that a 10-a-day smoker who quits tobacco cigarettes and switches to e-cigarettes could potentially save more than £1,000 a year. Their savings shouldn’t stop there and we believe switching to e-cigarettes should save customers money on life insurance as well.”

Nicolites is the UK’s biggest brand of electronic cigarettes, stocked by a large number of national retailers including Tesco, Sainsbury’s, ASDA, Superdrug, Co-op, WH Smith, Martin McColl and over 10,000 independent pharmacies and convenience stores.

E-cigarettes are designed to look and feel like real cigarettes, but are battery-powered products containing liquid nicotine, which is inhaled as a vapour. They contain no tobacco and do not burn, therefore not exposing users to tar and other carcinogens found in normal cigarettes.

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