What Are The Economic Costs Of Smoking?
August 12, 2011 in Featured, Tobacco & Alcohol Issues
Smoking not only causes major health problems, it is also a very expensive habit. Consider the following:
- The average cost of a pack of cigarettes, including taxes, is $4.49. A one pack per day smoker spends about $34 per week, or $1,768 per year on cigarettes. A 40 year old who quits smoking and puts the savings into a 401(k) plan returning 9% per year would accumulate nearly $250,000 by age 70.
- A $500,000 20-year term life insurance policy for a healthy, non-smoking 44 year-old male would cost $570 to $1,035 in premiums per year vs. up to $4,250 per year for a smoker.
- About 1% of employers do not hire smokers.
- Over 5% of companies charge smokers more for health care premiums.
- Non-smokers generally get a 10%, or higher, discount on homeowners insurance.
- Social Security payments to smokers are less because of shorter life-expectancy due to smoking-related illness.
- Smokers realize less money on the sale of their homes or cars because of lingering odor and/or stains.
Smoking takes a substantial economic as well as physical toll. Smoking costs employers over $98 billion per year in lost productivity and an additional $97 billion in healthcare costs.
