It is perhaps reassuring to know that life insurance premiums have reduced in price over the last few years. This is thought to be down to a combination of factors which include strong pricing competition within the industry, and advances in medical technology resulting in people generally living longer. This is good news if you are planning on taking out life insurance. However, when arranging a policy, there is still more you can do to ensure you that you are not paying too much on your premium.

Life insurance is based on probability. Though unforeseen circumstances can cut life short, generally people will fulfil an average life expectancy and it is on this theory that life insurance companies can invest earnings and collect interest. However, for certain groups that probability is reduced and as such they are considered to be of a greater risk for life insurance companies. This could lead to higher premiums and, in some cases, even exclusions.

Decisions made as to who represents a higher risk will often vary from insurer to insurer. However, in general, insurers will work from a high-risk group system, and may raise premiums accordingly.

People in high-risk occupations, including those in the Armed Forces, the oil and gas industry (especially offshore), pilots and fishermen, may end up paying more for their life insurance.

Having a dangerous sport or hobby will often mean you are considered a greater life insurance risk. These include aviation, climbing and mountaineering, motor sports, parachuting, bungee jumping and even skiing, snowboarding or horse-riding

People with an existing medical condition are considered a greater risk. Family history, weight issues, bowel conditions, cancer, high blood pressure, etc – such factors can dramatically increase your premium.

Smokers are considered a greater risk than non-smokers due to proven links between smoking and some cancers and other serious and terminal diseases. Premiums for both life insurance and critical illness cover increase substantially as a result.

For obvious reasons, taking out a life insurance policy over the age of sixty will inevitably mean higher premiums. In fact the older you get, the more costly life insurance will become.

Gender can also affect your premium. Although being male does not put you in a high risk category, the fact is men don't live as long as women.

It's not all bad news though, in some cases there are things you can do to lower you premium. Quitting smoking, for example, can save you up to 60% on your life insurance premium.

If you suffer from a medical condition such as diabetes or cancer, then find an insurance company that is more sympathetic to your needs. Specialist companies will have underwriters who will analyse your specific situation and adjust your premiums accordingly, rather than simply lumping you into a particular group. Going with a life insurance company that understands your situation can help you get a cheap policy.

If you are overweight or technically obese, then losing weight could not only save you money in premiums but could also mean you don't have a list of medical exclusions added onto your policy. Being obese has been proven to directly cause other serious illnesses, such as cancer and type-two diabetes, as well as putting a strain on vital organs such as the heart. Loosing weight considerably reduces the risk of developing these life-threatening conditions.

Perhaps the most important advice for those wanting to purchase life insurance is to shop around. Don't just go with the first quote you get. Compare the prices that each company offers for the same level of cover. You may be surprised by how cheap one UK life insurance provider is compared to another. Use online life insurance comparison sites to help you find the best deal.

With Joint Life Insurance, the policy will pay out on the death of the first policyholder, subject to the policy being in force at the time. This leaves the second person uninsured and often older. Older people can struggle to get life insurance at an affordable premium, so rather than a Joint Policy consider taking out separate policies. Although you will be paying two premiums instead of one, you will also have twice the coverage.

You can often save money by paying your premiums annually. Many insurance companies will charge you more if you want to make payments more frequently.

Of course the premium you pay will mainly depend on the type of insurance you take out (Whole of Life or Term Life Insurance). Generally speaking though, there are two types of life insurance premium: the Guaranteed Premium and the Reviewable Premium. With the Guaranteed Premium, your life insurance company guarantees to never increase your policy premium. With the Reviewable Premium, you agree that the company can review your policy at set intervals. Initially, the Reviewable Premiums will work out cheaper. However, over time these premiums are likely to be increased and therefore the overall cost will surpass that of the guaranteed premium.

And remember, life insurance is a long-term commitment; think carefully as to whether or not you will be able to keep up your premium payments before you take out a policy.