Life insurance: save money
Unlike home or car insurance, where your policy automatically ends each year and has to be renewed each year, life insurance is 
a long-term product. Life insurance is a general term which describes policies which pay out in the event of death. Such policies are often taken out when consumers borrow a large sum of money. For instance, your bank or building society may ask you to take out a life assurance policy. Life insurance is arguably your most important type of insurance, and it should help to give you peace of mind that your loved ones will be assisted financially if the worst were to happen to you.
Life insurance can involve a significant financial outlay, so it is important to consider your needs carefully and shop around for the right cover and best long-term value. For some types of life insurance you have the right to switch to a new provider without penalty at any time.
Why should I think of switching my life insurance?
To save money. Our consumer finance website, itsyourmoney.ie publishes regular surveys of insurance costs that show how you could make significant savings over the term of a policy.
But switching policies may not always be the best approach, as the cost rises the older you are and you can't switch a policy from one company to another - you have to start a new policy.
How do I go about it?
It's quite easy to shop around for life cover. You could ask for quotations either directly from the life insurance companies or by going through a registered broker. You can ask for quotes in person, in writing, over the phone or online. The more channels you try the better, and remember that many brokers offer substantial discounts when you buy life insurance online. In particular:
- Where relevant, check what cover you may already have through your job or pension scheme
- Decide the type and amount of cover you want
- Get as many quotes from different companies as you can
- Ask what the premium would be if you held the policy for various different terms such as 10, 15 or 20 years
- Make sure you are dealing with an authorised company - to find out if a firm is regulated check the Financial Regulator's Registers website or contact the Financial Regulator on Locall 1890 77 77 77.
What should I tell them about my particular situation?
Honesty is the best course, so always include any relevant information. If you don't, your policy may be invalid and your insurer could reject a claim. If you are unsure whether certain information is relevant, tell them anyway.
What if I'm not sure about the new policy?
Don't sign unless and until you are completely happy with all the terms and conditions. If there's anything in the small print you don't understand, ask the insurer to explain. If you are still unsure or confused, don't sign anything.
Remember too that, with a few exceptions, you should be entitled to cancel your cover within 15 days of the life insurance policy being issued, and to get a refund of any premium you've already paid.
What about mortgage protection policy?
This is one of the most common forms of life insurance, because mortgage lenders require this kind of cover as a condition of giving you a loan. If you have already been dealing directly with a mortgage lender, you will invariably have been offered its own mortgage protection product.
But under consumer law you have the freedom to shop around for another company's product at any time. You do not have to take the policy on offer by your lender.
But does that mean I have to move my mortgage too?
No. You can keep your mortgage with your old lender, but move the mortgage protection policy to someone offering better value.
Learn more
Read about how to switch other (non-life) insurance policies
Look for price surveys comparing different policies on our consumer finance website itsyourmoney.ie.
Find out about the Financial Services Ombudsman's complaints procedures if you have trouble switching insurers