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Insurer’s policy may mean annual cash bonus for ex-smokers

The financial rewards of not smoking are not just limited to saving the cash that previously went up in smoke.

Cast your mind back to New Year’s Eve 2009… Did you decide to make 2010 the year to stop smoking? If you did – and you succeeded – you will by now be well aware of the many benefits of that momentous decision.

Now cast your mind back to the day when you could declare with absolute confidence: “I am a non-smoker!” It would probably be somewhere around New Year’s Eve 2010… Did you remember to tell your insurance company of your new status?

If you didn’t, you will not be alone. According to Sainsbury’s Finance, there are about 3,300,000 ex-smokers in the UK who are collectively paying out £316m more than they need to in life insurance annual premiums because they haven’t shared their good news with their insurers.

Life insurance companies usually classify ex-smokers as non-smokers after they’ve achieved 12 smoke-free months without using nicotine replacement products. According to Sainsbury’s Finance, the average smoker’s yearly life insurance premium is £209.75 – against just £111.88 for a non-smoker.

There has to be a reason for that…