Give up the fags and save a packet!
Research by comparison website moneysupermarket shows that if you quit smoking, your health and finances will improve greatly.
By quitting the habit, most forms of life assurance and health insurance will be far cheaper than for a smoker.
For instance, a 30 year old taking out critical illness cover with Aegon Scottish Equitable worth £150,000 over 25 years could save £5,121 over the term, or £17.07 per month, with a non-smoker policy. Critical illness insurance pays out a large lump sum if you are unable to work and have been diagnosed with a serious illness or condition such as cancer, heart attack or stroke.
The research also found that a non-smoker could make considerable savings on life cover of up to £1,548 on a 25-year single, life insurance policy provided by LV=, compared to the rates charged to a smoker.
In addition, the British Heart Foundation estimates you could save nearly £3,000 a year on the cost of cigarettes, based on a saving of £8 a day for the average smoker.
Emma Walker, moneysupermarket.com head of protection, said: “Those who quit smoking not only reap the health benefits of kicking the habit, but also benefit from the financial rewards of cheaper life and critical illness insurance.
Insurers insist that smokers kick the habit for a full 12 months before being classed as a ‘non-smoker’ and qualifying for lower insurance premiums.
Smokers looking to ditch their habit should use this as a motivation, as there are savings to be made in the future and they should shop around for the best insurance deal to suit their circumstances in the meantime.”
Dr Mike Knapton, associate medical director at the British Heart Foundation, added: “Quitting smoking is the single best thing you can do for your health and your wealth.
Keeping track of what you’re saving is a great motivator to stay off the cigarettes as it mounts up very quickly. In just one week, an average smoker saves more than £50, and in a year this adds up to a considerable amount of money.”
If you gave up smoking more than 12 months ago and have a life assurance, critical illness assurance or income protection plan, which you took out whilst you were a smoker, you should contact an independent protection specialist, as there is a very good chance that a new policy will save you a considerable amount of money!