Here are some handy tips to help you get the most out of your life insurance.

1. Start young – the earlier you buy insurance the more likely you are to be in good health – this means you'll start your contract on a standard premium rate. Once you have insurance, it's guaranteed renewable regardless of what conditions you may suffer later in life. If you take cover out later in life you are more likely to have suffered from a condition that will see you pay higher premiums or have that specific condition excluded from your cover.

2. Find out if you have cover through your super and how much you've got. You may only need to top up your cover and by doing so through your super you'll pay a lower premium than taking out a stand alone policy. You'll also save money because premiums are paid out of your pre-tax income.

3. Decide how much cover you need. It's important not to underinsure but you also don't want to take out more than you need.

4. Shop around. The insurance industry is highly competitive.

5. Read the Product Disclosure Statement (PDS). While it may not be an exciting read, it is important as it fully describes the product, its benefits and any limitations.

6. Observe the duty of disclosure - answer all questions on the application truthfully, paying particular attention to any medical conditions and whether you smoke. If you don't your insurer may decide not to pay a claim.

7. Check if the product provides for indexation to account for the effect of inflation over time.

8. Check your Income Protection Insurance in your super ('Salary Continuance Insurance'). If it includes a two-year benefit period, take out private cover that takes effect at the end of the two year period. This can significantly reduce your premiums.

9. Claim your premiums as a tax deduction – some insurance premiums are tax deductible, depending on your circumstances.

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