Kick the habit and save a packet

With Brits across the country pondering their New Year resolutions, moneysupermarket.com reveals those who kick the smoking habit could see a difference in their wallets as well as their health.

Research from moneysupermarket.com found Brits kicking the habit could save on average £9,225 on combined Critical Illness Cover (CIC) and life cover, or up to £1,725 on a single life insurance policy.  What's more, with the average cost of a packet of 20 cigarettes at £6.29, a smoker could save themselves around £1,547 per year if they make the decision to go smoke-free.

According to the latest research, just over a fifth of women (22 per cent) and almost a third of men (30 per cent) are now ex-smokers - and two thirds of current smokers would like to give up altogether.

Emma Walker, protection expert at moneysupermarket.com said: "New Year is often the time when people make promises to themselves to be healthier - but kicking the habit would benefit your wallet too.  Don't let your hard earned cash go up in smoke; there are real savings to be made by kicking the habit and shopping around for the best insurance deal to suit your circumstances. In order to be classed as a ‘non-smoker' and qualify for life insurance premium savings, insurers insist smokers have kicked the habit for a full year."

The research shows non-smokers will save considerably on a combined CIC and life insurance policy. A 30-year old male wanting £150,000 worth of cover over 25 years could save up to £9,225 over the term if they make the decision to go smoke free. A woman wanting the same level of cover could save £4,284 by kicking the habit. Those who choose to go smoke-free will benefit financially for ‘single life' insurance too. For £150,000 worth of cover over 25 years the difference in premiums for smokers and non-smokers is on average £1,725 per term for men, and £1,020 for women.

Emma Walker continued: "Critical Illness Cover could prove vital if a person finds they are unable to work due to serious illness - especially important in today's financial climate. With considerable savings to be made, smokers will hopefully find the willpower to permanently kick the habit in 2011, benefiting their health and their wallets."

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 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.