Swap ash for cash on No Smoking Day

No Smoking Day on 11 March will give smokers a great opportunity to kick the habit and save themselves thousands of pounds on their insurance in the process.

Insurance companies consider ex-smokers to be ‘non-smokers' a year after they have given up. Being classed as a non-smoker means that, for many types of policy such as Life Cover and Critical Illness Cover (CIC), premiums can become around 50% less expensive, so many people could still save money even if their policy has been in force for many years.

To be classified as a non-smoker by an insurance company you must have quit smoking for at least 12 months. At that point, you should speak to an adviser to see if they can rebroke a new policy for you at a cheaper premium. A cheaper premium is not certain, as it also depends on age and health, but there is a very good chance that the premium will fall.

Matt Morris, Senior Policy Adviser at ASDA Life, says: "It is important to make sure you have a new policy in place before cancelling your existing one, as your new policy could turn up some nasty surprises in underwriting and may even be declined if your health has changed."