Whether its life cover, or insurance for your car or home, most of us begrudge paying to protect against our worst nightmares.

Image: Sydney and Roxy decided that separate life cover was probably for the best

But for those looking to protect their loved ones in the event of their death, more than a decade of tumbling premiums has at least helped to ease the financial strain.

Intense competition amongst life insurers has resulted in a term assurance price war, with providers continually adjusting rates in order to win market share. This combined with longer life expectancy and more streamlined underwriting processes has seen the cost of cover fall drastically. In some cases premiums have fallen by as much as 54% over the last ten years.

Every year it seems as if life cover premiums have bottomed out, yet the price reductions just keep on coming. In the last year alone the average male non-smoker premium on a level term assurance policy has fallen by around 6%, with an equivalent female enjoying a 9% reduction.

It is not only new customers seeking life cover for the first time that can benefit from falling premiums. If you have taken out a term assurance policy in the past decade and remain in good health, you should also review what you are paying to see whether changing your policy could offer a potential saving.

However you need to tread carefully, particularly if you have health issues or risky hobbies. It is also vital that you assess the scope of cover provided by the existing policy to ensure that you are not compromising cover for cost. If in doubt, it is wise to consult an independent financial adviser.

Whether you are purchasing life cover for the first time or simply reviewing your current policy, it is worth remembering the following five tips to ensure that you get the right policy at the best price:

1. Assess your needs.. Carefully consider both the amount and the type of cover you need. Term assurance is the simplest form of life cover and offers to pay out a lump sum if you die during the chosen period. This can be a level amount (typically to cover an interest only mortgage) or decreasing (usually for a repayment mortgage). One option, often overlooked, is family income benefit which provides a regular, tax-free, monthly income, rather than a lump sum payout.

2. Shop around for the best deal. Life insurance companies assess risk differently. Some policies are as much as five times more expensive - so make sure you are not wasting money needlessly. A great place to start is our life insurance best buys.

3. Consider adding critical illness cover to your policy. This will mean that the sum assured is payable on the diagnosis of a critical illness, such as cancer, a heart attack, multiple sclerosis or a stroke.

4. Take out two separate single policies rather than joint cover. Traditionally joint life cover was far cheaper than buying two separate single life policies. However, more recently the price differential between the two has become minimal. Two single life policies will provide twice the level of cover and offers far more flexibility.

5. Put it in a trust. Saving money on your monthly premiums is important, but could prove a false economy if the proceeds of your life assurance are eventually liable for inheritance tax. This can be avoided by writing the policy in trust so that the proceeds are paid directly to your dependants.

Richard Eagling is Editor of Investment Life & Pensions Moneyfacts

Cristiano Ronaldo may be worth £80 million in the eyes of Real Madrid, but the average Dad is worth around £23,000 a year to a British family in terms of the work they do around the home.

Image: Charlie pondered the need to protect the family whilst making their favourite meal

Legal & General’s “Value of a Dad” survey has highlighted the significant, and often overlooked, cost of replacing the domestic chores carried out by doting Dads. According to the research men spend 53 hours a week on household work and childcare. Almost half of this time (21.5 hours) is spent on looking after the kids, 9.5 hours on housekeeping, 7.5 hours on cleaning and 6 hours on cooking.

Yet, despite the huge contribution that Dads are making to the running of the household they are in serious danger of undoing all their hard work by neglecting one key responsibility: protecting their loved ones in the event of their death or serious illness.

Just 63% of Dads have life insurance in place, 33% have critical illness cover and 27% have income protection. Family income benefit, which pays out a regular tax-free payment in the event of death, is the least popular form of protection of all, with just 23% of Dads holding this type of policy.

This low protection uptake is particularly disappointing given the fact that many products are now offering better value for money than ever before. For instance, whilst motor insurance premiums have doubled over the last 12 years, life insurance premiums have dropped by a massive 40%.

The average premium for a 35 year old male non-smoker taking out £100,000 of level term assurance is just £10.28 per month, equivalent to around 35 pence a day. For many people the cost of purchasing life insurance should no longer be a valid excuse. At the very least you should have enough life insurance to cover any outstanding debts such as your mortgage or personal loans.

Many insurers will also allow you to add critical illness cover to your life insurance which will pay out a lump sum on the diagnosis of certain specified illnesses. The number of illnesses covered has continued to increase and in some cases insurers will automatically include cover for your children at no additional cost.

Father’s Day provides us with an opportunity to show our appreciation for all the hard work that Dads do. But it should also serve as a powerful reminder of the need for Dads to protect their family against financial hardship. The value of a Dad around the house may be £23,000 but the peace of mind of knowing that adequate protection is in place is priceless. Take a look at our life insurance best buys to check the latest rates on offer.

Richard Eagling is Editor of Investment Life & Pensions Moneyfacts