Smokers could save over £6,000 on life cover

With No Smoking Day (NSD) on March 10 and the third anniversary of the smoking ban on the horizon, moneysupermarket.com reveals those who kick the habit could see a difference in their wallets as well as their health.

moneysupermarket.com found Brits kicking the habit could save on average £6,044 on combined Critical Illness Cover (CIC) and life cover, or up to £1,685 on a single life insurance policy.  What's more, with the average cost of a packet of 20 cigarettes at £6.13, a smoker could save themselves around £1,508 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. Figures from the UK's leading price comparison site show 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 £6,044 over the term if they make the decision to go smoke free. A woman wanting the same level of cover could save £3,655 by kicking the habit.

Emma Walker, head of protection at moneysupermarket.com said: "It is crucial smokers seriously consider both the medical and financial benefits of quitting, instead of letting their 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."

Further research from moneysupermarket.com shows 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 £1,685 per term for men, and £1,190 for women. For example, life insurance cover with AEGON Scottish Equitable would cost a 30 year-old male smoker £15.17 per month, or £4,551 over the term. The same policy for a non-smoker stands is considerably lower, £9.51 per month or £2,853 over the term, saving of £5.66 per month or £1,698 over the term.

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, 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.