Getting covered

Dos and don'ts of life insurance policies.

Age:the older you are when you are taking out a policy, the higher the premium will be

Gender:premiums for life cover are cheaper for women than men, as women have a longer life expectancy

Smoker:premiums for smokers are much higher than for non-smokers (sometimes double the cost) due to earlier death among smokers

Current and past state of health:if you have a medical condition or have a family history of a certain illness or early death, you may pay a higher premium or have that illness excluded from your policy

Work and lifestyle:Your premium may be increased if your work or lifestyle interests are likely to put you at greater risk of early or sudden death

DOs AND DON'TS

DOinclude all relevant information about your medical history and lifestyle when applying for life assurance. If you lie or leave out importance details, you may not be covered.

DOfind out if you have death-in-service benefits through your job, and what the level of cover is. Also factor in any mortgage protection held, and any pension and social welfare benefits that your dependants would be entitled to on your death.

DOdecide if you need any extra cover, and get information on the type of policies that meet your needs

DOshop around, either by getting quotations directly from life assurance providers or through a broker. Costs can vary widely for the same level of cover. (A life assurance cost survey can be found on www.itsyourmoney.ie)

DOconsider giving up smoking. After one year, or in some cases two, many insurance companies will give you non-smoker rates. This could cut your premium in half.

DOremember that (with some exceptions) you have a 30-day "cooling off" period during which you can cancel a policy.

DOkeep your premiums up to date. Otherwise your policy may lapse, in which case you will not be covered if you had a claim.

DOreview your life assurance regularly, particularly when your circumstances change.

DOkeep a list of your policies and let someone know where they are.

DON'Tcash in an existing policy to take out a new one unless you have a good reason. The cost of any new cover may be higher than the policy you already have because you are older. Also you might not be able to get new cover if your occupation or health has changed in the meantime. In any case, a new policy will mean a new commission payment to the agent.

DON'Tbuy life assurance that you don't need or that you already have.

DON'Tassume that the mortgage protection offered by your mortgage provider is the cheapest on the market - shop around.

(Information provided by the Irish Financial Services Regulatory Authority)