Smoke-free Brits could save thousands on critical illness premiums

Three smoke-free years could see ex-smokers save £9,150 on the cost of protection and cigarettes, according to moneysupermarket.com.

Research from the comparison site revealed critical illness cover of £100,000 for a 30 year old male smoker over the next 25 years would cost £41.29 a month with LV=, but only £24.78 for a non smoker; a saving of £4,953 over the full term. A non-smoking female with Legal & General would pay £2,790 less than a smoker.

Since the smoking ban came into force, in July 2007, a smoker could have saved themselves £4,190 on cigarettes by going smoke-free. Despite this, recent statistics reveal fewer smokers have been giving up recently; 26 per cent during 2008 and 2009 compared to 31 per cent in 2007.

Emma Walker, head of protection at moneysupermarket.com said: "Three years on the benefits of kicking the habit remain - for your pocket as well as your health.  The potential difference in the cost of protection premiums is vast, but in order to be classed as a non-smoker and qualify for life-insurance premium savings, insurers insist smokers have packed it in for a full year. Once smokers have given up for 12 months - this includes any tobacco-replacements products they might be on, such as nicotine patches - they should go back to their insurer and ask for non-smoker rates; subject to tests to prove they've quit of course."

Considerable savings can also be made on single life insurance cover. It would cost £11.10 a month with Aviva for a smoker but £4.04 a month for someone who has kicked the habit - a saving of £1,212 over the term.

Emma Walker continued: "It's disappointing less Brits are kicking the habit recently compared to when the smoking ban came into force - those still puffing away are effectively letting their hard earned cash go up in smoke.

"The better your health, the cheaper your protection premium - the savings to be made by ditching cigarettes are vast. It is essential to do your research to get the right premium for you - shop around for the best deals currently available on the market and decide on the most cost-effective deal to best suit your circumstances."

moneysupermarket.com's top tips for protection:

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

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

Always review cover at 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.