Smokers have less money to burn that the rest of us – that’s because on average, smoking costs them £92,000 during their lifetime.

So the forthcoming ban on smoking in enclosed public places which comes into effect in summer 2007 is surely a great time to take your last drag! Similar smoking bans already in force in Scotland and Ireland, have persuaded thousands and thousands to give up.

Indeed, recent figures from the Health Development Agency show that smoking is the biggest single cause of illness and premature death, killing some 83,200 people a year in England alone! It’s not surprising therefore, that health considerations are the most persuasive reasons for kicking the habit – but there are some significant financial reasons as well!

As smokers and ex-smokers alike can testify, it’s far from easy to quit the habit – but along with the health dividend, the thought of extra spending money should provide a major incentive. Reformed smokers could put some of their newfound money into savings or pay off debts quicker, or even overpay their mortgage. Even more holidays come into play!

And life insurance is another area to make big savings. Smokers frequently pay up to twice as much for their cover than non-smokers and it seems as if premiums for smokers are still rising. That’s because for some years now the insurance companies have been locked in a price war fuelled by the Internet.

People searching the Internet for low prices, have forced the insurance companies to cut their standard rates – these are the rates they quote all their initial enquiries. But the insurers have had to recover some of their revenue in other ways. What we have seen is a tightening of underwriting criteria. This means that anyone who is not a lithe, fighting fit non-smoker will have to pay non-standard rates – to you and me, that means more! And as smokers expose themselves to a self imposed health risk, they get hit in the neck!

So giving up smoking is a really good way to save on your life and critical illness premiums. Most companies won’t classify you as a non-smoker until you’ve fully given up for a least a year - and some even want five years. But once you’ve passed the 12-month stage you need to contact your insurer and be re-quoted. And don’t be tempted to lie because that’s false economy. If you were subsequently to make a claim, the insurer is certain to seek confirmation from your Doctor that you were a non-smoker and if that was wrong, the claim would be thrown out under the policy’s non-disclosure provisions.

Once you have the re-quote you’ll see a big reduction in the premium but don’t accept it automatically. The odds are that you’ll still get a cheaper quote elsewhere on the Internet – and what better place to start than our web site!

Just a word of warning. If you do find it’s cheaper to switch, don’t cancel your existing policy until the new policy is confirmed and in place. That’s because it’s always possible that the new insurer will revise their initial quote upwards when they’ve seen your full application details and health record. Only cancel your existing policy when everything’s in place with your new policy.

And it’s quite easy to terminate a policy – simply cancel your direct debit! After a few weeks the insurer will contact you to find out why - just tell them you don’t need the policy anymore, and that’s that! There are no cancellation charges just more savings in the bag.

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