COUPLES CAN save over €6,000 by choosing a joint life insurance policy rather than obtaining cover individually, according to a cost survey by the Financial Regulator.
Smokers pay about double in premiums compared with non-smokers, on average, but even smokers can make significant savings - up to €4,700 over the life of a policy - by shopping around, the survey found.
The premiums charged for term life insurance and mortgage protection insurance by eight leading insurance companies were examined in the survey, which found significant price variations, particularly for joint and dual policies.
Joint life policies end if a pay-out is made on the death of one policyholder; dual policies remain in force even after a payout on the death of one of the policyholders.
New Ireland was cheapest in seven of the eight categories of policy for a term life insurance policy offering €400,000 cover over 30 years for a person aged 29. Ark Life was cheapest for female non-smokers. Canada Life had the most expensive premiums in four categories, Eagle Star in two, and Friends First in the remaining two.
For mortgage protection cover amounting to €450,000 over 30 years for a 28-year-old, Irish Life was cheapest for male smokers and non-smokers, New Ireland was cheapest for female smokers and non-smokers and Hibernian was cheapest for a joint policy for two non-smokers and, equally with Ark Life, for a joint policy for a male smoker and a female non-smoker.
"These cost comparisons highlight the possible savings that a couple could make by shopping around for a joint policy, which pays out a benefit if either person dies during the term of the policy," according to the regulator's head of consumer information, Sharon Donnery.
"By choosing a joint policy rather than two individual policies, you could save up to €25 a month. This adds up to a saving of more than €6,000 over the term of a 20-year policy."
The survey highlights the penal cost of being a smoker. The highest premium for a 29-year-old male non-smoker seeking cover over 30 years was €35.60 a month, but the same cover cost a maximum of €70.25 for a smoker. For a woman, the equivalent premiums were €29.05 for a non-smoker and €49.05 for a smoker.
Housebuyers are regularly offered mortgage protection cover when they apply for a mortgage but their lender cannot insist that they buy this product from them.
"You are free to shop around, so take a look at the cost comparisons to see if you could get a policy that suits you better," said Ms Donnery.
However, she advised against delaying before applying for mortgage protection, as in some cases insurance companies require more information or a medical before agreeing cover. "Any delay in getting mortgage protection insurance could mean delays in buying your house, or the house purchase falling through."
More information on the survey is available on the regulator's website, www.itsyourmoney.ie
