Giving up smoking is good for your wealth
GIVING up smoking is not just good for your health, it can be a big boost for your wealth as well.
Today is No Smoking Day and kicking the habit does not just save you the price of a packet of cigarettes, it also cuts your insurance premiums.
Once you have given up tobacco and nicotine replacement products such as e-cigarettes for a year, insurers will offer lower premiums rates in recognition of your improved health and life expectancy.
Around 7.6 million people smoke, just under 16 per cent of the population.
The average 40-year-old smoker pays £41.06 a month for £150,000 term life insurance, which rises to £55.71 at age 50. However, non-smokers pay less than half those sums, just £17.11 and £23.90 respectively. By giving up, the 40-year-old will save £7,185 over the full 25-year term of the policy, while the 50-year-old saves £9,543, said insurer Royal London.
Underwriting and claims philosophy manager Craig Paterson said quitting smoking cuts the risk of a heart attack, stroke and a variety of cancers: “After a year smoke free you can save on life insurance too.”
The NHS stop smoking service offers free support and your wallet will immediately feel the impact if you give up. The typical male smoker smokes up to 12 cigarettes a day, with women close behind at 11 per day.
With a packet costing around £10.26 the average smoker is watching money go up in smoke. Quitters could save over £2,000 a year, personal finance website MoneyGuru.com calculates.