Frazzled nicotine addicts won't need yet another reminder that Monday, March 29th, is the day that the ban on smoking in workplaces - including pubs, nightclubs and restaurants - comes into effect, writes Laura Slattery

Smokers who are hoping to use the ban to steer them off cigarettes and onto a diet of patches, gum, chocolate and beermat fidgeting will already know (if their friends and family haven't kindly worked it out for them) that they could save roughly €45 a week if they kicked a 20-a-day habit.

But once the last wisps of smoke have wafted away from their eyes, they might want to take a look at some of the less obvious financial advantages to giving up.

Every reformed smoker with a mortgage has much to gain in the way of wealth as well as health.

Because they are more exposed to health risks, have shorter life expectancy and, therefore, give rise to a higher incidence of claims, smokers must pay extra for all types of life assurance.

This includes mortgage protection, which is generally compulsory in the Republic for borrowers under the age of 50 and pays off home loans in the event of a borrower's death or, in some cases, critical illness.

A male smoker who buys a policy when he will be 40 on his next birthday will pay a typical premium of €39.40 a month for mortgage protection covering a €250,000 loan over 20 years, compared to €21.55 for a non-smoker, according to online intermediary LABrokers.ie.

This means the smoker will pay €214.20 extra in mortgage protection premiums.

If the smoker has dependent children, it is likely that he also has a separate life assurance policy that will give his spouse or partner a lump-sum payment upon his death to make up for any loss of family income.

By virtue of the fact that he/she lights up and puffs away on a regular basis, such a smoker will be paying an additional €322.08 a year for a €250,000 policy over 20 years.

As the table shows, smokers in all categories pay almost twice as much for term life assurance than those who shun cigarettes.

Some companies will distinguish between moderate smokers (20 or fewer cigarettes per day) and heavy smokers (more than 20 cigarettes per day).

The life industry's position on cigar smoking is cloudy, with no consensus on the impact of cigar and pipe smoking on mortality or on specific diseases.

"Most companies have taken the position that all forms of tobacco are equally harmful and charge cigar and cigarette smokers the same rates," says Mr John Geraghty, chief executive of LABrokers.ie.

However, traditionally, Bank of Ireland Life, Eagle Star and Royal Liver have treated cigar smokers as non-smokers when it comes to setting premiums, meaning there is an added incentive for cigar smokers to shop around for their life assurance, critical illness and mortgage protection cover.

"Cigar smokers should probably act quickly, too, as insurance companies could change their rules if research or adverse claims experiences determine that cigar smoking is more dangerous than previously believed," according to Mr Geraghty.

Cigarette smokers, meanwhile, may not be able to instantly switch to lower non-smoking rates simply because they woke up one morning feeling particularly determined to beat the cravings.

Ring up your life assurance company to tell them you've binned your last remaining cigarettes and that you'll never inhale again and its reaction will implicitly echo the incredulity of your more doubting friends.

"Many people will have given up smoking as their New Year's resolution and are currently not smoking," says Mr Geraghty. However, in the eyes of insurers, a non-smoker is a person who has not smoked in a year.

When first applying for life assurance or mortgage protection, people must answer a question about their smoking habits. If you make a false declaration, the insurance company will probably refuse to pay out in the event of a claim.

"A common question is to ask applicants to declare whether or not they have smoked cigarettes in the last 12 months," says Mr Geraghty. "The alternative declaration to receive non-smoker rates is that they have not used any form of tobacco in the last 12 months."

Some companies, for example Friends First, require abstinence for 24 months, he adds.

Even then, saving the full differences between smoker and non-smoker rates may not be possible.

"In most cases smokers who give up the habit have to re-apply for insurance cover," Mr Geraghty explains.

"This can be to their disadvantage as they have to re-apply at their present age and the cost of purchasing new life insurance increases as we get older," he says.

In some cases, a smoker may have developed an adverse health history since they first took out their policy, which would further complicate matters.

"A much better system would be a revaluation of premiums once a person has been off cigarettes for a specified time," Mr Geraghty says.

"The life industry has its part to play in the wider social benefits of such a philosophy," he believes.

But there are still savings to be made if you pay attention to the health warnings on cigarette packets early into the policy term.

For example, a female smoker aged 35 on her next birthday will pay €29.66 as a typical monthly premium. If she gives up and re-applies when she is 40 on her next birthday, the premium will drop to €24 and she will save €67.92 annually.

From time to time, financial institutions have encouraged smokers to think laterally when it comes to deciding what to do with the extra money - approximately €45 - a 20-a-day smoker will have in his or her weekly budget if he or she give up cigarettes.

Rather than let the money seep into a variety of spending black holes, last year National Irish Bank suggested that homeowners who smoke could turn their "ash into cash" by adding the money to their normal mortgage repayment, therefore reducing the amount of interest to be paid and paying off the loan early.

For example, a mortgage holder with a loan of €200,000 over 30 years on NIB's current standard variable rate of 3.49 per cent could shorten their mortgage term by six years and eight months if they start overpaying by €180 a month from the third year onwards.

Assuming interest rates stayed the same, this would result in interest savings of almost €28,000 over the term - enough to make smoking seem like a costly habit in more ways than just one.