3 financial benefits to quitting smoking
Quitting smoking can be as good for your health as it is for your wallet. Discover 3 positive impacts it can have on your finances!
There are many health benefits to quitting smoking. Better breathing, more energy, lower risk of cardiovascular diseases, and much more.
But the benefits don’t stop there. Quitting cigarettes and tobacco products also has a positive impact on your wallet. Find out more about three financial advantages to quitting smoking.
1. More money to put into savings
According to Health Canada's cost calculator, someone who smokes 12 cigarettes a day spends almost $2,500 per year on tobacco products. That’s a lot of money that could be working for you if you invested in an RRSP, TFSA or an RESP.
In practical terms, our RRSP Calculator estimates that a contribution of $2,500 per year for a person who is 30 years old and wants to retire at age 65, would lead to almost $240,000 in savings1!
That’s a significant amount of money that could give you a more comfortable retirement, along with the better overall health you’ll enjoy.
2. Lower life insurance premiums
When you apply for life insurance, your premium is calculated based on your current health condition and your family history. Because smoking can cause many different cancers and chronic illnesses, this bad habit can unfortunately have repercussions on the cost of your coverage. Life insurance costs can be an estimated 35% to 50% higher for smokers than for non-smokers.
Let’s look at an example of a 40-year-old man who wants to purchase $100,000 of permanent life insurance with $400,000 of term coverage, $50,000 of critical illness insurance and disability insurance for a 2-year period with an annuity of $3,500 per year.
3. Lower home insurance premiums
Did you know that cigarettes are the leading cause of residential fires in Canada? For home insurance, your premium cost is based on the risk of damages your property is exposed to (like living in a flood-risk area for example) and just the fact that a smoker lives in your home can drive the cost of insurance up.
There are so many advantages of quitting smoking. If you’re thinking about quitting cigarettes or other tobacco products, don’t hesitate to ask for expert help by contacting organizations like the Short Messages Against Tobacco service, or the Canadian Cancer Society, and by talking to your doctor.
1 This result is for illustration purposes only and includes all contributions invested over the years plus a prediction for a return on investment. The rate of return used for this simulation is 5%. Real returns may vary.