Give up smoking and shave £2,000 off your life insurance premiums

With No Smoking Day (NSD) on March 12, and the smoking ban reaching its one-year anniversary this summer, those who kick the habit could save over £2,000 on their life insurance.

According to price comparison website moneysupermarket.com, smokers who stub out their last cigarette will benefit not only their health but their wallets too, with life insurance premiums for non-smokers at nearly half the cost than for their smoking counterparts.

For example, life insurance cover for a 35 year-old man, wanting £100,000 over 25 years would be £17.68 a month with Scottish Provident if he were a smoker. If he were a non-smoker, he would only pay £9.91 a month – a saving of 44 per cent or £2,331 over the term.

Louise Cuming, head of protection at moneysupermarket.com said: “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 difference in premiums between a smoker and a non-smoker is vast and there are significant additional savings to be made simply by shopping around for the best deal to suit your circumstances. “

According to the NHS Stop Smoking Service there has been an increase in those who have quit smoking since the smoking ban came into force on July 1, 2007. With moneysupermarket.com’s term assurance service on its website, customers can easily and quickly compare the available life insurance policies and see how much they could save.

Louise Cuming said: “NSD coincides with the Chancellor’s Budget this year and chances are the cost of cigarettes will continue to rise. So if you’re keen to give up this year and save yourself some money, now is the ideal time to do it. Smokers often benefit from a higher income from pension payouts in retirement due to lower life expectancies. However, most people value the health and lifestyle benefits of quitting early and a significant slice off your life insurance premiums could simply be the icing on the cake.”

moneysupermarket.com has the following tips when looking 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.