Smokers who kicked the habit three years ago when the smoking ban came in could save a potential £10,000 on critical illness insurance premiums and cigarettes.
According to moneysupermarket.com, which carried out the research to mark the third anniversary of the smoking ban on 1 July 2007, smokers who quit three years ago could save a total £9,150, by not buying cigarettes, and by paying cheaper critical illness insurance premiums.
Quitters who were smoke-free for three years could have saved £4,190 on cigarettes, and another £4,950 on critical illness insurance premiums over a 25 year term.
For example, a 30 year old male smoker could pay £41.29 a month for £100,000 of critical illness cover, whereas a non-smoker's premiums would be almost half, at £24.78 a month – a total saving of £4,953 over the 25 year term.
A female non-smoker could pay £2,790 less than her smoking counterpart. In order to be classed as a non-smoker, and therefore qualify for cheaper critical illness and life insurance premiums, insurers insist policyholders be smoke-free for a full year.
Life insurance premiums are also cheaper for non-smokers, with savings for a non-smoker amounting to a total £1,212 over the term.
Following the start of the smoking ban in 2007, the number of smokers in the UK fell by 31 per cent, but this reduction has been slowing, falling by 26 per cent in 2008 and 2009.
Commenting on the findings, Emma Walker, head of protection at moneysupermarket.com, said: "Three years on the benefits of kicking the habit remain – for your pocket as well as your health." She suggests that critical illness and life insurance customers should contact their insurer once they have been smoke-free for a year.
"It's disappointing less Brits are kicking the habit recently compared to when the smoking ban came into force – those still puffing away are effectively letting their hard earned cash go up in smoke.
"The better your health, the cheaper your protection premium – the savings to be made by ditching cigarettes are vast. It is essential to do your research to get the right premium for you." Ms Walker urges consumers to compare critical illness and life insurance quotes to get the best cover at the best price.
© Fair Investment Company Ltd