Quit smoking and save on life insurance

The smoking ban came into effect last July and with No Smoking Day (NSD) on March 12, those who give up smoking could save more than £2,000 on their life insurance.

Price comparison website moneysupermarket.com said not only will giving up smoking benefit health but life insurance premiums for non-smokers are almost half the cost than for their smoking counterparts.

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. However, if he were a non-smoker, he would only pay £9.91 a month, a saving of 44% or £2,331 over the 25-year term.

Louise Cuming of 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 at least 12 months.

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, added Ms Cuming.

The NHS Stop Smoking Service said since the smoking ban last summer, there has been a rise in the number of people who have given up smoking.

NSD falls on the same day that Chancellor Alistair Darling delivers his first budget. The price of cigarettes will continue to rise so now is a good time to save some money, concluded Ms Cuming.

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