It can be costly to ensure that your dependents are protected financially in the event of your death, or that your family's income is secure if you become ill and cannot work. We've identified a number of ways that you can save on your life and income protection insurance premiums and gain the greatest benefit from your cover:

1. Shop around – Seeking a number of quotes in these highly competitive insurance markets will help you find the most appropriate policies for you. Ask about occupational policies – some companies offer discounted rates to groups such as medical staff and other professionals.
2. Check your superannuation fund – This may already include life insurance. By using your super fund contributions to pay for life insurance you'll save money on your disposable income and the premiums will be tax-deductible. But bear in mind that the fund trustees can have the final say on who the beneficiaries are.
3. Start young – By buying life insurance when you're in your 20s you'll benefit from lower premiums initially, and may be offered long-term customer discounts later on.
4. Stop smoking or other high-risk activities – In calculating premiums companies offer preferential rates to non-smokers and people who don't have risky occupations or hobbies.
5. Prepare for your medical exam – By avoiding or reducing your alcohol, caffeine, tobacco and salt intake for a few days, and taking sufficient rest, your medical readings may be improved resulting in lower insurance premiums.
6. Buy a term policy – Premiums are nearly always cheaper than whole life policies for people aged under 40, and a term policy can often be converted later to a whole life policy without the need for a medical.
7. Check the small print – Ensuring you know the details of the coverage, costs and benefits of your life or income protection policy, you can ensure it is cost-effective for you. You may want to avoid offset clauses which mean payments are reduced if you have other sources of income, or to have life insurance which pays for funeral and solicitor's costs separately.
8. Avoid escalation clauses – If taking out income protection insurance for a period of up to 5 years, higher premiums to cover increases in inflation are probably not worth the extra costs.
9. Phase your income protection cover – If your superannuation policy includes 2-year salary continuance insurance, take out private cover at the same time but phased to start two years later. The two year waiting period can significantly reduce your premiums.
10. Claim against tax – Income Protection insurance payments are tax deductible for many people, depending on income level. Make sure you include your premiums in your annual tax return.
11. Agree specific conditions on your income protection policy – Some insurers will offer lower premiums if you agree to time limits on payments for particular illnesses such as mental disorders, or if you negotiate a longer waiting period before payments are made.
12. Insure a lower proportion of your income – By arranging cover for less than 75% of your income your premiums will be reduced.