As hard-pressed households look for further ways to tighten their financial belts, many are resorting to cancelling their insurance policies.

Already 13% of people have cut their insurance spending and a further 26% are considering doing the same, according to a YouGov poll released this month.

However, a new study has revealed that smoking is one major reason why some are struggling to cope in the recession.

Smoking not only damages your health, but your wallet and life insurance cover too. A survey by the Office for National statistics shows that 44% of smokers believe the habit is the prime cause of premature death.

However, in a cruel twist of fate, the economic downturn has forced people into smoking more due to stress and worry levels.

A life insurance provider found that half of the UK's stressed parents admitted to eating badly, a quarter were smoking more heavily, and a quarter were found to be drinking more than six months ago.

All these factors can have an impact on life insurance premiums. Sixty-four per cent of UK parents were scared about paying the monthly bills.

An expensive hobby

Richard Bonds, a prevention specialist at Cheaha Regional Mental Health Centre, said: "Nicotine is the most addictive substance known to man, and it’s very hard to quit smoking."

A packet of 20 cigarettes now costs well over £5 and not surprisingly over 30% of smokers want to give up for financial reasons.

The habit has a nasty affect not only on the lungs, but on a life insurance policy too. Smoking can create breathlessness, dehydrated skin, yellow hair and increased pressure on body organs.

As a result, life insurers charge 10%-40% higher premiums for smokers. However, providers have suggested ways to cut down the cost, as well as the habit.

Josh Parris, an insurance agent: "Smoking doubles your life insurance premium, easily. No matter what company you’re with, your premiums are going to be twice those of a non-smoker."

If an individual gives up smoking, once they have been nicotine free for 12 months, some life insurers will consider them as a non-smoker and they can then start to benefit from lower insurance premiums.

New non-smokers should check for cover perks

For those who already have life cover as a new 'non smoker', it could be worth contacting the provider to see if any benefits are offered to lower premiums.

Many smokers find that smoking is costly socially too. Many can’t smoke at home, and it's banned from public places such as restaurants, pubs and the workplace. Most also won't smoke when there are children in the room, recognising the dangers of passive smoke.

Therefore, it is hardly surprising that findings from the Office for National Statistics revealed that 50% of smokers intend to quit in the next 12 months.

"Not smoking can save you a lot of money. Overall, insurance for a non-smoker is cheaper," Parris concluded.

Dr. Gary Turner, M.D., a Sylacauga-based specialist in otolaryngology said: "Everybody has their own little methodology for quitting smoking, but there are none that are uniformly successful."

He furthered: "In my experience, the best methodology is for the patient to finally come to the realisation that smoking is terrible for their health and has a high probability of decreasing their life span."