What are the best ways for people to save money on their life insurance?

Let’s start easy – no insurance at all will save thousands of dollars a year.

And if you’re a nihilist, don’t really love your spouse and kids, or believe you’re invincible and that bullets rebound off you like Superman, this could work for you. (Do you want me to tell your kids, or will you?)

For the rest of us mere mortals – who may succumb to illness, injury and even death – insurances are a necessity. They will protect you, your family, your home and your investments, for when life turns all kind of unfair and pear-shaped.

Until you’ve “made it”, get adequate cover for all four.

Get the life and TPD inside your super fund. If you’ve got midgets and a monster mortgage, get truckloads. And it’s a tax deduction to your super fund.

Income protection is arguably the most important one for Generation Xers. We’ve still got most of our working lives ahead of us. It’s your ability to earn that is your most valuable asset. If you’re 40, earning $100,000, you’ll earn $2,500,000 between now and 65.

That’s what will pay the mortgage, the holidays, the lifestyle, the kids’ school fees, and build your super so that you’ve got something to retire on.

Protecting that income with insurance is a tax deduction. Don’t skimp on it.

Trauma isn’t tax-deductible and can’t be paid for with super. It doesn’t mean that you don’t get it.

Consider taking “level” premiums. While higher to start, they become relatively cheaper as you age. And skip the “cheap” no-underwriting stuff advertised on TV – the fine print will surprise you.

Bruce Brammall is the principal adviser with Bruce Brammall Financial (www.brucebrammall.com.au) and author of Debt Man Walking.