Today (Tuesday, 1 July 2008) marks the first anniversary of the ban on smoking in public places in England and Wales and according to moneyextra.com, smokers who quit this time last year can now cash in by re-broking their life insurance policies.

The consumer website says that smoking is a major factor for this type of insurance because of the proven health risks it causes and so insurers charge smokers higher premiums of up to 50% more than non-smokers.

Reformed smokers are re-classed as non-smokers when they have given up for a year and so can start benefitting from cheaper premiums when they have been nicotine-free for 12 months.

Additionally, some companies will re-evaluate the original policy and charge the reduced non-smoker rate once the qualifying period has passed. However, some may insist on a new policy. If this is the case, make sure that the increased premium for your higher age does not wipe out any saving you would gain for now being a non-smoker.

For example, Norwich Union would charge a 35-year-old male smoker buying £100,000 worth of life cover over 25 years £16.10 a month but a non-smoker could get the same cover for just £10.70 a month. Similarly Royal Liver would charge a 35-year-old female smoker £13.39 a month for £100,000 worth of cover but a non-smoker would pay just £7.50 a month.