Deciding to take out life insurance to protect your family means the inevitable trawl through the insurance companies to find the best deal. Whilst this job is now easier due to internet search engines it can still take time to find the right policy at the right price. Life insurance policies come in a number of different forms and can cover you for a number of different eventualities, so understanding exactly what you need is essential. 

For some people the price is the most important factor.  With the global credit crunch putting pressure on household finances, being able to afford life insurance is becoming increasingly difficult. But there are ways that consumers can reduce premiums, with the most lucrative being to stop smoking.
An analysis of the costs of life insurance premiums shows that for some people, not being a smoker would cost them halve of what a smoker would pay.  The reasoning behind this is because smokers are considered higher risk than non-smokers. People who smoke may die earlier and thus the need to use their life insurance policy is increased.  Insurers reflect this risk in the cost of the premiums, meaning smokers will have to pay more.

If you are already a smoker, you need to have kicked the habit for twelve months before being considered a non-smoker by the insurers. This is because those people who have quit for a year are less likely to start smoking again than people who have only quit for a week.  In addition the human body starts repairing itself from the harmful effects of smoking very quickly after someone stops smoking.

Whilst the incentive of lower life insurance premiums may not be the sole reason that people decide to stop smoking they can provide an incentive. However this coupled with the non-smoking ban, which came into effect across England in July 2007, may encourage more people to stop.  Insurers are expecting a rise in the number of non-smokers requesting a quote this July, one year after the ban came into place.  Research has shown that already 14% of smokers (1.6 million) have given up smoking since July 2007.

The additional benefit to stopping smoking is the money saved on buying cigarettes. With the average price of a pack of twenty cigarettes being over five pounds, someone who quits should see an increase in their finances. This money could then be spent on funding a life insurance policy that protects your family in the event of death. 

Making sure your family is protected in case the worse should happen provides peace of mind, enabling millions to enjoy life without worrying about how their family will cope financially. Premiums for non-smokers are becoming more and more competitive and deals can now be found at very low rates. So if you are considering a taking out a life insurance in the near future it may be worth considering kicking the smoking habit and saving yourself some money in the process.