FTAdviser.com

Advertising

Some pub landlords have experienced a drop in takings, while on the other hand long-term benefits for the NHS could be huge.

But the smart opportunity the ban has brought for mortgage advisers has gone largely unreported.

Results of research funded by Cancer Research estimate 400,000 people have quit smoking since the ban came into force last year.

That is a lot of people who may have taken out a protection insurance policy alongside their mortgage who have since changed their smoker status.

If they have kicked the habit, then an adviser could cut the cost of their client's premium for life or critical illness cover by about half by rebroking to a new policy, while at the same time earning commission.

Now is the ideal time to be getting in touch with customers who were smokers when they originally took out protection with their mortgage to see if they would benefit from a new policy now.

On an application form customers are asked if they have smoked in the last 12 months – so someone who gave up smoking at the time of or shortly after the smoking ban would now be in a position to answer "no".

It is also worth revisiting former smokers who, when they took out their mortgage, could not afford to take out protection insurance as well.

According to the NHS Go Smokefree website, an average 20-a-day smoker paying £5 a packet would fork out an incredible £1825 a year for cigarettes.

Those savings would easily pay for some protection insurance. Even a full protection package of life or earlier critical illness cover for £100,000, plus income protection of £1500 a month, would only cost around £85 a month for a non-smoking 40-year-old man.

Naturally advisers need to be aware of when the commission clawback period ends for clients with existing protection policies.

But most advisers will have clients on their books who are now ex-smokers and would benefit from some advice on protection.

Jamie McIver is director of protection sales for Axa