Is Big Tobacco Doubling Down?

We all know the name, Philip Morris International. What most of us don't know is that the tobacco company that brings us Marlboro cigarettes, is also getting into the life insurance business. WHAAAT? As part of the deal with Reviti smokers will receive discounts if they stop, quit or switch to a possibly less carcinogenic product such as an electronic cigarette. Bravo Philip Morris.

The average discount for a regular electronic cigarette user is 2.5% discount on premiums, where as users of Philip Morris's new heated tobacco product iQOS, will receive a whopping 25% discount for the first 3 months of premium, though there is some incentive to quit as having not smoked for at least a year will receive a 50% discount on premiums.

If it seems all to noble it's because it just might be. “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,” CEO Andre Calantzopoulos told CNBC in an interview Tuesday.

It's always a great idea to quit smoking or to switch to a non carcinogenic product but be aware of the marketing ploys of big corporations, as your health is only a happenstance of their bottom line and not an actual priority.

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