Life insurance premiums for a male smoker in their late 50s are now almost double that of a non-smoker, according to research by Canstar.

A male non-smoker in their late 50s with $500,000 of cover would pay a premium of $310 a month, but for the smoker it is $600 – a 93% difference.

The biggest gap is for males between 40 and 49 years old. A non-smoker pays a monthly premium of $83 compared to the smoker paying $170 – a 103.67% difference.

For a female non-smoker in their late 50s with the same level of cover, the monthly premium would be $214, compared to $376 for the smoker – a difference of 75%.

Again the biggest difference is for females aged between 40 and 49 with the non-smoker paying $70 a month and the smoker $127 – an 82% difference.

Canstar Wealth Manager Paul O’Connor says smokers know their habit is expensive due to the price of cigarettes, but many may not realise their life insurance is also costing them a lot more.

“The rules around smoking are very strict when it comes to personal insurance,” he said. “Even if you smoke just one or two cigarettes now and then – or if you use a nicotine patch or have an occasional cigar – it can cost you hundreds of dollars each year in additional premiums.”

Mr O’Connor says the higher premiums are there for a good reason.

“Smokers pay a higher premium because they have a higher risk of claiming,” he said.  “When it comes to life insurance in particular, that’s a pretty uncomfortable thought!”