Philip Morris International is offering insurance premiums to tobacco users who decide to take a healthier approach by quitting smoking and switching to vaping products.
PMI is selling life insurance called Reviti as part of its sustainability project of a "smoke-free" future. Smokers who will opt to use iQOS, the company's version of e-cigarette, can avail discounts for Reviti up to 50 percent.
Rewards For Not Smoking
People who switched to any type of e-cigarette will be given 2.5 percent discount in premium plans. Those who will use PMI's iQOS for three consecutive months will receive 25 percent discount.
Reviti's premiums for will start at £5 ($6.47) a month for a 20-year-old non-smoker with a coverage of £150,000 ($194,125). The same amount of insurance premium will cover £60,000 ($77,650) for a 40-year-old non-smoker.
PMI said the move is to encourage smokers to choose a healthier alternative. This is in line with previous studies showing that e-cigarettes reduce a person's risk of developing smoking-related diseases.
There are other options aside from iQOS, but PMI is putting emphasis on it.
"Obviously that makes sense for public health and the people who smoke themselves, but it also makes sense for our shareholders," PMI CEO Andre Calantzopoulos said in an interview.
He added that products such as iQOS are not cigarettes, so sellers and customers could benefit from lower excise taxes.
Toward A Sustainable Future
After decades of successful business, PMI decided to steer away from producing cigarettes and more into the alternatives to smoking.
PMI said the smoke-free product lineup will retain the taste and sensory experience of a typical tobacco smoker.
"Research commissioned by Reviti shows that 'big life moments' like retirement, having children and getting married increasingly trigger people to consider better lifestyle choices; and a third of people say they would change their lifestyle if they could save money on insurance," the life insurance company said in a press release.
The company is also looking to provide other products like insurance coverage for diet improvements, reduced alcohol consumption, or physical fitness.