Published: 02/09/2009

The cost of life insurance has fallen by nearly 30 per cent over the last ten years and in real terms is the cheapest it's ever been according to independent research earlier this year. If you have life insurance already, you may be able to reduce your premiums just by switching provider.

It may be a bit of a depressing topic but for many of us life cover is absolutely vital. But the good news is, if you're smart it doesn't have to cost a fortune.

Most of us try to find the cheapest car insurance, the cheapest gas and electricity and the best rates for our savings, so why not make the same effort with your life insurance and see if you can get a better deal here too.

Take a couple of minutes to see if Moneynet can save you some money on your life cover, if you haven't reviewed it for a few years, you may be pleasantly surprised - check out http://www.moneynet.co.uk/Insurance/Life-Assurance

While we're on the topic of life insurance, here are a few hints and tips to help you pay less for the cover you need.

1. Check if it's possible to get a different type of cover at a lower cost

The type of life policy you decide to choose will have a big impact on the size of your monthly premiums. The most common type of life cover is called level term assurance, which pays out a fixed lump sum if you die at any time during the policy term.

However, it's possible to reduce your premiums just by switching to a different type of policy.

One option is to take out decreasing term assurance. This is often used to cover your outstanding repayment mortgage; it's cheaper because the amount of cover this policy offers reduces every month in line with your reducing mortgage balance. Therefore because the insurer faces a lower potential payout, this is reflected in lower insurance premiums.

2. Consider buying separate policies

Once you've made a decision as to which type of policy you need, consider whether your partner needs cover too. If you both need life cover don't be tempted to take the easy option and apply for a joint policy. Joint insurance plans work out only marginally cheaper than individual plans, but the big difference with most joint policies is that you can only claim once. Once a claim is made the policy and cover it offers comes to an end, a situation that leaves the surviving partner without any cover.

If on the other hand you take out separate policies you will both be covered individually and you'll effectively have twice the amount of cover, in most cases for only a small additional cost.

3. Check what cover you already have

It's important you don't waste money by taking out more insurance than you need. You may have other policies in force such as death in service as part of your remuneration package at work. When looking at your overall insurance requirements, make sure you take account of any existing benefits that your employer provides.

4. Get an up to date quote for your insurance

So, now you know what type of policy to go for and how much cover to buy, but there's really only one way to guarantee you get good value for money: shop around. I know you've heard it all before, but getting an up to date quote to find the most competitive insurer really is very easy, just click here and we'll do all the leg work for you and let you know the most competitive prices on offer.

5. Find a replacement for your existing policy

You can switch your life insurance plan in much the same way as you would your bank account or credit card provider. However, because life cover is cheaper now than it has been for years, the chances are a new policy could cost you less.

There are a few things to bear in mind before you switch your policy:

• Check that you're not giving up any special benefits on the original plan which aren't included on the new policy.

• To avoid having a period without any cover in place, don't cancel your existing policy until the new one is up and running.

• If you're a lot older now than you were when you originally took out your policy, or your health has deteriorated, a new policy could prove to be a lot more expensive. If that's the case, you're probably best to stick with the policy you've got.

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