If you are a non-smoking, 20-something, heterosexual, female vegetarian living on the Isle of Man you could find yourself quids in when it comes to covering your various assets.

The world's first life insurance policy has just been launched by insurance company Animal Friends Insurance (AFI), to coincide with National Vegetarian Week next week. The theory is that following a vegetarian diet can reduce the chances of suffering from various types of cancer by up to 40%, so life insurance premiums should come down accordingly.

But while veggies might be the latest to benefit from their lifestyle in terms of reduced insurance costs, they're not the only target group for insurers offering lower premiums.

Things you can do to cut the cost of insurance

Go veggie

If BSE and foot and mouth weren't enough to put you off your Big Macs, maybe the chance for 25% off your life insurance will.

AFI claims a typical person would save around £40 with its policy, although savings of up to £150 could be made in some cases.

But don't think just cutting out the steaks and ordering salmon will save you cash. You will be required to sign a legal declaration confirming you do not eat meat, fish or poultry in order to qualify for the discount.

Give up smoking

You probably tried to do this for the New Year without success, so reduced life insurance premiums aren't likely to encourage you to swap tobacco for Nicorette patches.

However, according to internet broker LifeSearch, smokers are paying an average £85 a year extra for life cover.

Add this to the amount of cash you could save by giving up cigarettes, and you could probably pay for a holiday to celebrate.

Move to the Isle of Man

The cost of home insurance varies by as much as 325% for different people in different areas of the country, according to AA Insurance.

The cheapest cover is available for those homeowners in the Hebredes, Western Isles, Isle of Man and Jersey at an average of £103.

If you live in Peckham Rye in South London, it's time to move out, as you're looking at an average premium of £709.

Factors out of your control

Gender Girl power reigns supreme in the world of insurance. When it comes to covering your car or your health, women get a better deal.

Car insurance, which is notoriously high and starting to rise, is often available at a lower cost for women as statistically they are less likely to crash the car and, when they do, the extent of the damage is likely to be less severe.

There are even a clutch of insurers offering women-only insurance now, including Diamond, Ladies Direct and Women on Wheels (part of Endsleigh Insurance). Women also benefit from reduced rates when it comes to critical illness insurance. Statistically women are less likely to suffer from one of the core illnesses covered by the policy than men are.

Sexuality

Unfortunately, gays face problems when it comes to life or health insurance.

Insurers can ask about your sexuality in your application form, and will often follow it up with a lifestyle questionnaire if you are homosexual.

They can then request you go for an HIV test, but just taking the test will mean some insurers will refuse to cover you, even if you test negative.

However, there are companies who specialise in finance matters for the gay community. See Help and Contacts.

Age

Unfortunately, it is definitely impossible to turn back the hands of time - which would be an especially useful ploy when it comes to health and travel insurance.

The younger you are, the cheaper the health insurance, as you are less likely to fall ill. And while 20-somethings will find it easy enough to find a cheap travel policy, anyone over the age of 75 will find themselves struggling - especially if they're looking for an annual policy. Travel Protection Group offers cheap annual deals to over 75s.

However, when it comes to car insurance, 20-somethings miss out. Insurers recognise they are more likely to drive erratically and bump up the premiums accordingly.