Swap ash for cash on No Smoking Day

No Smoking Day on 10 March will give smokers a great opportunity to kick the habit and save themselves thousands of pounds on their Life Insurance policies 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 Insurance and Critical Illness Cover, premiums can become around 50% less expensive, so many people could still save money even if their policy has been in force for 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 a financial adviser for free 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 LifeSearch, says: "It is important to make sure you have a new policy in place before cancelling the existing one, as a new policy could turn up some nasty surprises in underwriting and may even be declined if your health has changed."