Review your life insurance

Life insurance is one of those things we have a habit of buying and then forgetting about. But while no one is advocating you switch your life cover as regularly as you switch your car or motor insurance, if you haven't ever reviewed your policy it's worth checking you aren't paying more than you need.

There are a number of reasons why you could save. Firstly, premiums have fallen in recent years. Obviously you will have aged over this period too, so there are no guarantees, but if you bought in the last five to eight years there's a reasonable chance of being able to cut your premiums - the younger and healthier you are, the better the odds.

If, like many, you took out the policy offered by your mortgage lender, there may also be an opportunity to save. These policies can cost as much as two to three times the best-value deals.

But the best savings tend to be made by reformed smokers. According to protection adviser LifeSearch, a 39-year-old male smoker will pay £26.05 a month for £100,000 worth of level term insurance, but a non-smoker would pay just £13.30. Over the 25-year term this offers a saving of £3,825. To qualify for these better rates, you need to have not consumed any tobacco - including nicotine patches - for 12 months.

However, it's worth noting that if your health has deteriorated you may well be better off sticking with your existing policy, as your new insurer would factor your new state of health into the premium. That's not to say it's not worth shopping around for a better deal, just don't cancel your old plan before your new one is up and running.