Quitting smoking pays dividends

Life assurance companies expect a non-smoker to have quit for a year

The health benefits of quitting smoking are clear, but how about the ex-smokers' financial well-being?

Financial information service Moneyfacts estimates that anyone who gave up a year ago could have made more than £3,000 if the cash was saved.

A 30-a-day smoker would save about £250 a month by quitting, which would have grown to £3,108 in a typical variable rate saver account.

But publicans say they have been hit financially by smoking bans.

The smoking industry is worth an estimated £12bn in the UK.

Life assurance

Most life assurance companies charge smokers about 50% more than non-smokers, Moneyfacts say.

Post-ban savings in England and Wales could now be made, as most companies stipulate that a non-smoker should not have lit up for 12 months.

But they add a note of caution, as some companies would require a new policy to be drawn up after quitting, while any saving might be wiped out by the extra premium from being a year older.

A ban on smoking in public places and workplaces in England came into force last July.

Bans were introduced in Scotland in 2006, and in Wales and Northern Ireland in 2007.

A series of economic challenges, including smoking bans, have hit the income of pubs, according to the British Beer and Pub Association.