The first thing to note is that Life insurance should only really be considered by someone who has financial liabilities on their death. Couples and those with children obviously fall into this category. For the single person with no dependents, actually health insurance may be far more relevant.

The second point is that insurance of this type, either life or health insurance can be surprisingly cheap, if it is structured correctly. In most cases we would not expect people to be paying more than 1% or 2% of their gross earnings on insurance related products. Many people take out life insurance cover and over-look health insurance which is equally if not more important.

Lastly, if you have policies that were set up more than 5 years ago without being reviewed, the chances are you may not be getting value for money. A review of your cover is essential to make sure that you have the correct levels of cover and you are not paying too much for the insurance.

For further information, please click here to view our fact-file on Life and Health Insurance Protection.