Marlboro cigarette maker Philip Morris has launched a life insurance firm called Reviti that offers insurance coverage to smokers who quit or switch to an e-cigarette or heated tobacco device.
The new venture will operate as a wholly owned subsidiary of Philip Morris.
Initially, Reviti will sell life insurance in UK market, with plans to foray into international markets in time.
Smokers who switch to e-cigarettes will be offered a 2.5% discount on premiums while users who opt for Philip Morris’ heated tobacco product iQOS for three months will receive a 25% discount, reported CNBC.
Additionally, the company will provide 50% discounts to people who quit smoking for at least a year.
Monthly premiums for a 20-year aged non-smoker will be nearly £5 ($6.47) for a life insurance policy that pays £150,000 ($194,125).
By paying the same premium, a 40-year-old non-smoker would be able to buy a £60,000 ($77,650) life insurance coverage.
In order to determine the size of discount to be given to policy buyers, the company uses scientific data along with the potential of a product to decrease a person’s risk.
Philip Morris CEO Andre Calantzopoulos told CNBC: “Obviously that makes sense for public health and the people who smoke themselves, but it also makes sense for our shareholders because financially, as these products are not cigarettes, they benefit from lower excise taxes and better margins, so it’s a win-win for everybody.
“That’s why we all move in this direction and the faster we move out of cigarettes the better for all of us.”