Giving up smoking certainly saves money on buying cigarettes, but the potential savings are even greater when it comes to insurance, one company claims.
Moneysupermarket.com calculated the potential savings to mark the third anniversary of the ban on smoking in indoor public places. It found that a typical 30 year old man would have saved more £10,000 having quit smoking at that point: £4,190 in cigarettes but £4,950 on critical illness insurance premiums, with a further £1,212 savings on life insurance.
The comparison is slightly misleading as while the cigarette savings are based on the three-year period, the insurance savings are based on reduced premiums over the next 25 years. That said, somebody considering giving up is certainly better off financially doing so earlier than later.
The company noted that life insurance firms will usually lower premiums once a policyholder has been smoke-free for a year (which starts only once they finish using replacement products such as nicotine patches) and urged people to contact their insurers as soon as they reach this milestone.