Stop Money Going Up In Smoke!

From next summer, all public buildings in England will become non-smoking. Here's how giving up smoking can save you a fortune.

I was delighted to see that the government has finally set a date when all public buildings in England will become non-smoking: 1 July 2007.

I have to confess that I'm a filthy smoker (as are fourteen million other Brits). However, I don't smoke at home (which is also my workplace); I puff away only in pubs and bars. Hence, when these become smoke-free next summer, there'll be nowhere left for me to hide. I'll be forced to go cold turkey and join the UK's eleven million ex-smokers, which is no bad thing!

Of course, smoking is a very real health hazard, as it greatly increases your risk of suffering from various cancers, a heart attack or stroke. Hence, for most smokers, quitting the wicked weed provides the single biggest boost to their health and life expectancy of any lifestyle change.

Naturally, by improving your health, you make yourself a more attractive customer for insurance companies, which leads to paying lower premiums for your protection. In fact, if you give up smoking for an entire year, insurance companies will offer you non-smoker rates, which can mean big savings on life and health cover.

For example, let's use me as a guinea pig to find out how much these potential savings are. Let's say that I want £200,000 of bog-standard level term insurance -- life cover which has no investment element and pays out only on my death. Here's how the premiums for smokers and non-smokers stack up:

For £200,000 of term insurance over 25 years (38-year-old male; guaranteed premiums)

Source: TheFool's insurance centre

So, if I'd given up smoking twelve months ago, the above life insurance policy would cost me £5,325 less over 25 years, which is a massive saving. Indeed, these quotes show just how risky smoking truly is, with a smoker forking out almost twice the premiums paid by ex-smokers and non-smokers. Wow!

The same principle (give up smoking to enjoy lower premiums) applies to other health insurance plans, such as income protection, critical illness and private medical insurance (and, in some cases, dental and travel insurance).

Thus, if you want to improve both your physical health and financial fitness, giving up smoking is one of the best steps that you'll ever take. If you'd like help with quitting, contact your GP, call the NHS Smoking Helpline on freephone 0800 169 0 169, or visit www.givingupsmoking.co.uk.

Now, where did I put that nicotine gum?

More: Use the Fool to find quality quotes for life insurance, car insurance and home insurance!