Stop smoking and save thousands on life insurance

With National No Smoking Day (14 March 2012) approaching, and the fifth anniversary of the smoking ban this year, recent research from MoneySupermarket.com reveals those who kick the habit could see a benefit to their wealth as well as their health.

The UK's leading comparison site found smokers who kick the habit could save on average £5,490 on combined Critical Illness Cover (CIC) and life cover, or up to £1,788 on a single life insurance policy. Furthermore, with the average cost of a packet of 20 cigarettes hitting £6.95, a smoker could save themselves a further £1,880 per year by making the decision to go smoke-free. 

Emma Walker, head of protection at MoneySupermarket said: "Not only can smokers reap the medical benefits of kicking the habit, but they can avoid letting their hard-earned cash go up in smoke too. With significant savings to be made, those who make the decision to quit should shop around for the best insurance deal to suit their circumstances. Insurers will insist smokers have kicked the habit for a full year in order to be classed as a ‘non-smoker' and qualify for savings on their life insurance premium."

MoneySupermarket found non-smokers can make considerable savings on combined CIC and life insurance policies. For example, a 30 -year old male wanting £150,000 worth of cover over 25 years could save at least £5,490 with Aviva over the term, or £18.30 per month, if he made the decision to go smoke free. A woman wanting the same level of cover could save at least £2,742 a term with Ageas Protect or £9.14 per month just by kicking the habit.

Emma Walker continued: "Critical Illness Cover could prove vital if a person is unable to work due to serious illness, which is especially important in today's financial climate. With considerable savings to be made, smokers will hopefully find the willpower to permanently kick the habit, benefiting both their physical and financial health."

moneysupermarket.com has the following tips when looking for protection:

Don't always be lured by the lowest premium or incentives. Look at policy coverage and extras within the cover to make sure you are getting the best value for money and the best coverage;

Make sure your answers are truthful and correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected;

Always review cover following life-changing events such as a change of job, having children, a change in marital status, increased debt or moving house;

When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place;

If the premium is too big for your budget, consider getting some initial critical illness cover that you can add to later.