It’s No Smoking Day on 14 March – and that’s as good a time as any to kick the habit.
You will not only be healthier if you stop smoking, you will also be wealthier. Of course, you won’t have to pay for cigarettes any more. But you will also pay less for your life insurance. In fact, your premiums could fall by as much as 50%.
For example, a 30-year-old female smoker would pay £10.07 a month with Legal & General for £150,000 of life cover over 25 years. If she quit smoking, she could buy a similar policy with Zurich for £6.70, according to Lifesearch. She would therefore save a total of just over £1000.
A 40-year-old woman could expect to pay a monthly premium of £25.82 as a smoker, or £13.02 if she kicked the habit. The savings over the term of the policy add up to £3840.
Most people never think about switching their life insurance. Instead, they stick with the same firm throughout the term. But you can shop around for life cover, just like car insurance – and you can often get a better deal by switching, even though premiums tend to rise with age.
Just remember to make sure your new policy is in place before you cancel your existing cover, just in case anything goes wrong. You should also bear in mind that insurers do not class applicants as non smokers until a year after they have given up. But what better incentive do you need?
Find out what else you can do to reduce the cost of life insurance.
Naomi Caine was editor of The Sunday Times Money section for six years before she moved out of London to bring up a young family. She now juggles two children with a freelance career, and has written for a variety of publications, including MSN, Yahoo, The Times, The Sunday Times, Which? Money, Money Week and The Sunday Herald.