How expensive will smoking become? Extend your life and protect your income

James Marks | 01 October 2017

Two things in life are certain - we all want to be wealthier and live longer, right?

Both of these things are important to me and if they are for you too then you’re in luck. The UAE government is about to make it a whole lot easier for you to protect yourself and family and at the same time live longer. Much longer.

On October 1st 2017, the Federal Tax Authority (FTA)  imposed 100% tax on tobacco products. As a smoker, you can either moan and complain or you could look at this new tax in a very positive way.

The (not so) clever trick to extend your life and become healthier is obvious:

Quit smoking.

 

How much do you spend now and how much will you spend?

Using myself as the example here, I smoke on average 1 pack per day (not including the extra when I go out drinking).

10 AED per day = 3,650 AED before FTA tax on tobacco

24 AED per day = 8,760 AED after FTA tax on tobacco

I’m not sure about you but, this is enough to make me stop (aside from all the health risks I know too well and decide to ignore)

 

What could you spend the extra money on?

Loads of fun stuff and a pretty long list, just take a minute to imagine what you would spend it on...

I want to look at something that is very important, but what is considered by most to be 'boring' – INSURANCE.

If like me you’re in the minority here in the UAE and you already have Life and Critical Illness Insurance, then well done most do not! (my only question to you would be is it the suitable amount to fit your situation, can you get a better deal?)

 

My challenge to you

Join me in quitting smoking, I have stocked up but, once they have gone I will stop smoking and use the savings towards my Insurance cover, which by the way will become cheaper once I have stopped smoking, below are some facts and figures

Average life insurance rates for men and women in the UAE are significantly reduced after a year of quitting and even more so after 2 years. 

Below is a few examples of the premiums that would be paid for Critical Illness Cover of $150,000 for the term of 20 years.

Critical Illness Insurance rates for men (monthly)

Age

Smoker

Non-Smoker

% Difference

35

40

45

AED 293

AED 459

AED 714

AED 204

AED 279

AED 413

30%

39%

42%

(The table above is based on British males living in UAE with DOB 01/01/1972/1977 & 1982)

 

Critical Illness Insurance rates for women (monthly)

Age

Smoker

Non-Smoker

% Difference

35

40

45

AED 237

AED 365

AED 600

AED 195

AED 264

AED 355

18%

28%

41%

(The table above is based on British females living in UAE with DOB 01/01/1972/1977 & 1982)

 

The real cost of smoking

Although we don’t like to talk about it, the truth is cigarettes cause cancer. You don’t need me to remind you that your risk of a heart attack is 70% higher than that of a non-smoker, or that you are up to 30 x more likely to die from lung cancer. You already know that every puff is completely crippling your organs.

What happens when you get cancer and you don’t have critical illness cover (CIC)? A 6-month course of chemotherapy in the UAE will set you back anywhere between AED100,000 – AED200,00 – I know, right? Better to die quickly, unless of course you are forward-thinking and have bought yourself CIC.

By the way, your private medical insurance might not cover you for all this bill (it's worth checking how much is covered as most have an upper limit).

 

So, here’s the challenge…

If you’re a fellow smoker reading this, I challenge you to quit for good (or when your cheap stash runs out!).

Protect yourself, protect the people you care about and add years to your life. The time we have on this planet is short after all, let’s try and make it that bit longer.

 

Make an enquiry for a full insurance review

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Tags: critical illness insurance

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