Insure a wealthier future by quitting smoking

Smokers could save as much as 2,000 a year by stopping, insuresupermarket.com has found.

10:42 04 January 2005

Smokers could save as much as 2,000 a year by stopping, insuresupermarket.com has found.

For those not convinced by the health benefits of giving up their nicotine habit, the financial comparison website has pointed consumers to the many monetary benefits that quitting can offer.

These include a 180 average saving on life and critical illness insurance for men - not to mention the 1,770 saving that can be made from simply not buying cigarettes (for a 20 a day smoker).

Insuresupermarket.com says that the UK's 12 million smokers pay more than 15 a month more for their life and critical illness cover adding up to 2 billion a year in excess insurance payments.

But even quitting now will not be enough for some insurers, it adds.

"Many insurers insist that policyholders can only class themselves as a 'non smoker' if they have not consumed any tobacco in the last twelve months, but it is still worth contacting your insurer to let them know you are quitting and they will advise accordingly - at the very least, it will be only a year before you will see premiums tumbling," said Richard Mason, director of insuresupermarket.com.

He added: "Likewise, for anyone who made a resolution to give up smoking last New Year and has successfully quit - now is the time to review your life insurance. At the very least, tell your current insurer that you are no longer a smoker, but better still, shop around to see if you can improve on your premium."

Yorkshire Bank has said that if the money saved by the UK's smokers from giving up was put into ISAs it could be worth over 124 billion after ten years.

Geoff Greer, Yorkshire Bank's chief operating officer, commented: "As well as damaging your health, smoking really can hurt your wallet too. And the great thing is, if you give up, the equivalent money could be put straight into an ISA and you wouldn't even notice. After only a few years you could have saved up enough to buy yourself a real treat such as a dream holiday or even a new car."