Make a New Year's resolution to save money on Life Cover

Protection specialists LifeSearch advise how you could save money on your insurance premiums as a financially tough 2009 approaches.

This New Year, after all the presents have been opened, the food has been scoffed, and wine quaffed, make sure you get your finances fit to cope with the cost of that very merry Christmas to ensure it also turns out to be a happy 2009.

The cost of life cover has fallen by around 40% over the last few years and consumers could be wasting thousands of pounds by not reviewing their policies, advises LifeSearch.

Throughout 2008 the monthly cost of Life Insurance cover has continued to fall. It means that now is a good time to buy. In addition, Critical Illness Cover (CIC), which is frequently sold alongside Life Cover, has also been falling in price.

Income Protection (IP), the most important protection product for most people, has remained relatively static in price, but it is still possible to save money, especially if the policy was not one of the cheapest on the market originally.

Also, remember that if you have given up smoking for over 12 months, you should look at rebroking the policy as you can potentially save hundreds of pounds with a cheaper premium. Although a cheaper premium is not certain, as it also depends on age and health, there is a very good chance that the overall cost will fall.

Matt Morris, LifeSearch Senior Policy Adviser, says, "There are a number of steps that customers can take in the new year to freshen up their finances and save a bit of money. The first thing is to actually take action. Don't wait until New Year's Day 2010 comes round before you start thinking about saving money on insurance premiums again.

"However, it is important to remember that price should not be the only consideration when choosing a protection product and customers should look at the policy that offers the best value for money rather than simply the cheapest."