Consumers can save between €595 and €5,000 by shopping around for the cheapest life assurance policy, the Irish Financial Services Regulatory Authority said yesterday. Laura Slattery reports.

The financial regulator published a survey of how much it costs to buy life assurance and mortgage protection, a type of life assurance policy that most homeowners must purchase.

The regulator said the differences in monthly rates between providers could amount to significant savings over the full term of the policy.

The monthly costs for a 36-year-old non-smoker taking out a €300,000 life assurance policy over 25 years ranged from €36.42 to €45.29 for males and €27.92 to €33 for females.

Smokers have to pay considerably more for life cover, with monthly premiums starting at €72.06 and €46.08 for 36-year-old male and female smokers respectively.

The financial regulator said a €250,000 mortgage protection policy will cost a 26-year-old female smoker an average of almost €2,600 more than a non-smoker of the same age, while men in this category will pay an average of almost €3,200 more if they smoke.

While smokers pay more for cover, there are still significant differences in the rates for smokers.

A 38-year-old male smoker could save over €11 a month for a €300,000 mortgage protection policy, or €3,400 over the term of the policy.

The financial regulator's consumer director, Mary O'Dea, said people should consider whether they need life assurance or if they have enough life assurance.

The regulator described people with a partner and dependent children as needing for life assurance in order to provide enough money for their families' day-to-day needs and their children's education and to pay any taxes that might be due on their death.

Ms O'Dea reminded house-buyers that they do not have to accept the mortgage protection policy offered to them by their mortgage lender.

"While this may be a discounted rate for the first few years, it is worthwhile looking at our survey to see who offers the best mortgage protection rates to make sure you are getting the best deal you can," she said.

Copies of the survey and a guide to life assurance are available by phoning the consumer helpline on 1890 777 777, by visiting www.itsyourmoney.ie or by calling into the consumer information centre at College Green, Dublin 2.