We all understand that smoking isn't good for one's health. Actually in the judgement of the CDC tobacco use causes more than 5 million deaths each year across the planet. Roughly smokers die 10 years earlier than nonsmokers do. So as 2014 has begun, if you've settled to quit smoking as one of your resolutions, consider the following costs of smoking as added motivation to quit.
Smoking Causes Massive Opportunity Costs:
Smoking is a high-priced habit. Buying and using one pack of cigarettes each day , the average smoker spends about $2,500 a year. Those funds should be put to work paying down your mortgage, college loans or card balances, helping to boost your money affairs. But the opportunity costs are even bigger when you look at the prospective future.
The average yearly return for the S&P 500 including the Great Depression and Great Recession is 7.81% in the past 20 years. If you invested $2,500 each and every year over 20 years you might have $140,000. Invest $2,500 annually for 30 years and the potential return is closer to $350,000. Put those funds to work using an advanced financial newsletter service like what Summerland Associates offers and the total could be in the millions.
Smoking Creates Expensive Insurance Premiums:
Smoking also increases the cost of insurance premiums. As discussed earlier, smokers die at an earlier age than nonsmokers do. As a result, your life insurance premium could be twice what a non-smoker would pay. That amount can add up to thousands of dollars a year. Smokers also have more medical issues than nonsmokers do so you will have to cough up more for health insurance. According to a featured article in Forbes, insurers can charge smokers 50 percent more than they charge nonsmokers under the Affordable Care Act.
House owners insurance is also more pricey for smokers. Statistical data are clear: folks who smoke have house fires more often than folk who do not. That fact leads to higher insurance premiums. Probabilistic data also demonstrate that smokers get into more car crashes than nonsmokers. This implies a rise in auto insurance rates too.
The Damage Smoking Causes Requires Expensive Medicines and Medical Treatment
Smoking harms almost all organs in the body in the in the opinion of the Center for Disease Control. During the process it seriously ups your possibility of developing coronary heart problems, peripheral vascular illness protracted bronchitis emphysema and a range of cancers. The care for these conditions may need expensive medicines and hospitalization. According to the American Lung Association smoking costs the U. S. $96 bn. in direct health care outlays in 2004 or an average of $4,260 per adult smoker.
If you are a smoker you have plenty of finance motivation to quit smoking in 2014. While the health benefits are best for people that quit smoking earlier, you can cut your chance of disease and death irrespective of age. It might not be simple to do as the nicotine in cigarettes is as addictive as heroin, cocaine, and alcohol however it is feasible. Be certain to visit the CDC web site for motivating stories and tips and communicate with your health practitioner about smoking cessation programs available through your health insurer.
After you've successfully stopped smoking be certain to talk with your insurance pro about possible nonsmoker discounts on all of your insurance products. Finally put that additional capital to work. Pay off debt. Save for a holiday. Put more into your retirement account. The sky is the limit!
About the Author:
John A. Larsen, the Managing Director of Summerland Associates, LLC, has worked in financial services for 20+ years starting in banking. John has held Series 7, 63, and insurance licenses working with high net worth clients to craft better portfolios. John has spent the last 10+ years refining advanced investment ideas
into a series of practical strategies that drive the Summerland Alerts. More articles are available on Summerland Associates web site or through Wealth Building Ideas, made availalbe for iPads.
into a series of practical strategies that drive the Summerland Alerts. More articles are available on Summerland Associates web site or through Wealth Building Ideas, made availalbe for iPads.
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