The Commerce Department reported that retail sales fell 0.4% in April from the prior month, a steeper decline than the 0.1% slip economists expected. Sales in March were revised down. Consumer spending makes up more than two-thirds of U.S. gross domestic product, the broad measure of economic activity. GDP shrank at a 6.1% rate during the first quarter and would have contracted farther if not for a minor spurt in consumer spending. If Americans continue to curb their purchases of goods and services in the months ahead, that would undermine the scenario of a second-half economic rebound that investors have been hoping to see.

The week’s consumer spending report also struck at a time when many market veterans believe stocks are vulnerable to a correction following a bustling springtime rally. Investors are carefully sorting through individual names, looking for those best positioned to weather the remainder of the recession. 

Other data suggested little relief in the housing sector – a key driver of the recession that has dragged on since December 2007. A report by RealtyTrac showed that the number of U.S. households facing foreclosure jumped 32% in April, and mortgage applications fell last week as fewer homeowners sought to refinance. 

One new source of pressure facing consumers is a resurgence in energy prices. Crude-oil futures have climbed back to around $60 a barrel after falling close to $30 a barrel earlier this year. Data Wednesday showed import prices jumped by 1.6% last month thanks to the jump in fuel prices. Oil futures remained high in early trading, hovering above $58 a barrel ahead of a weekly stockpiles report. 

Asian markets ended mostly higher, with the Nikkei up 0.5% boosted by a better-than-expected earnings outlook from Nissan Motor. Stocks in Europe were lower.

But life insurance companies see alcohol consumption differently. Like smoking tobacco, alcohol consumption can easily affect how much you pay for life insurance.

Along with blood pressure, cholesterol levels and weight, alcohol consumption is an important life insurance underwriting factor. Although the cost impacts on your premiums are harder to determine than other factors, carriers have specific definitions to determine the extent of potential health risk.

Obviously, the degree of consumption is relatively subjective, given that one person’s “social drink” is another’s six-pack afternoon. Therefore, insurance companies usually look at three things to determine your life insurance rates, as it relates to alcohol consumption: (1) Simple questions regarding your consumption of alcohol; (2) Your driving record; and (3) results from your application medical examination.

Alcohol and Life Insurance Quotes

As you may notice during your life insurance application, you’ll be asked several questions about any existing medical conditions including liver disease and high blood pressure. Further, you may also be asked about any history of alcoholism and/or drug abuse. Make sure that you answer these questions accurately so that in the event you pass away, the policy isn’t cancelled under the realization that you provided false information. Although you are not shopping for car insurance, life insurance carriers are known to check your driving record for any alcohol related offenses.

DUIs and Life Insurance Rates

It’s believed that there is a significant correlation between DUIs and alcohol abuse–and regular alcohol consumption could raise your term life insurance rates. Be aware that DUIs remain on driving records for up to 7 years in some states. Most insurance companies require a medical examination to put the policy in to force. Other than verifying your actual weight, height, and blood pressure, these exams generally involve a blood test that looks for elevated levels of enzymes in your liver.

How You Can Find Lower Term Life Insurance Rates

Often times, recovering alcoholics and those who drink heavily underestimate the ability to find affordable life insurance with adequate coverage levels. However, even smokers can attest, nearly everyone can find affordable term life insurance rates when paired up with the right company – even those who consume alcohol on a regular basis. Recognizing that 64% of Americans drink, there is a significant market for life insurance companies to offer competitive term life insurance products.

Five Ways to Save on Term Life Insurance

1. Purchase term life insurance when you’re young

Secure as much protection at a young age while your health and prices are still good.

2. Select the right length of term life insurance coverage

Everyone has different needs, and not one size fits all when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement.

3. Check for term life insurance policy price breaks

Companies often offer “price breaks” at certain coverage amounts, e.g., $250,000 vs. $225,000. The truth is that many people can actually pay less money for more coverage. Check how little your prices increase when you increase coverage to $250,000, $500,000, or $1,000,000.

4. Buy the right amount of term life insurance coverage

Many agents may try to sell you more coverage than you need. Independent financial planners recommend purchasing an amount of coverage equal to 6-10 times your annual gross income.

5. Review your term life insurance policy often

Conduct a review of your life insurance policy at least every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection.

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Shopping Online and Comparing Multiple Quotes

The amount you pay for term life protection depends on the amount and term-length of your policy, your health and age, and the insurance company you select. To find the best price though, make sure to shop and compare quotes from multiple companies. As you will learn, the cost of the same policy can vary by hundreds of dollars among different insurance companies. Just as your needs are always changing, so are term life insurance rates.

Selecting the Appropriate Length of Coverage

Everyone has different needs, therefore, no one size fits all when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. Individuals who have 30-year mortgages for example, might consider a 30-year term life policy to ensure that the home is protected throughout the life of the loan.

Your Rates Increase at Your “Half” Birthday

While some companies raise their prices based on your actual age, most companies increase the price of their policies six months before your birthday. It’s a term called “Age Nearest” in the industry, and that half-year price increase could really add up over a 20-year term policy.

Determining the Right Amount of Coverage

In shopping for term life insurance, many agents may try to sell you more coverage than you need. Understand that the purpose of life insurance is to replace financial loss, and what most people should be looking for is “income replacement” for their beneficiaries. Financial planners recommend a policy amount at least equal to 6-10 times your annual gross income.

Checking for Price Breaks: Paying Less for More

Insurance companies are known to offer “price breaks” at certain coverage amounts (e.g., $500,000 vs. $750,000). Many people can actually pay less money for more coverage. Check how little your prices increase when you increase coverage to $250,000, $500,000, or $1,000,000. After you get quotes, an InsWeb advisor can identify such opportunities.

Buying When You’re Young

While your financial needs may be lower at a younger age, the rates are also substantially cheaper when you’re young. The best advice is to lock in as much protection at a young age while your health and prices are still good to avoid paying substantially more when a shorter-term policy expires.

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Compare Homeowners Insurance Quotes

Homeowners insurance rates can vary by hundreds of dollars from company to company, therefore, homeowners should shop for insurance the same way they would shop for any other product. Homeowners should compare prices, policy coverage and conditions, and even consumer complaint reports.

Look for Multi-Policy Insurance

Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy the Homeowners Coverage You Need

Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings.

Further, homeowners shouldn’t spend money for coverage they don’t need. For example, if you don’t live in a flood-prone area, you may not need costly flood insurance.

Consider Raising Your Deductible

Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000, you ay to save nearly 25% on your premium.

Look For Discounts That May Apply to You

There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Other common homeowners insurance discounts include:

A new home’s electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older home, therefore new homes are usually charged lower rates than older homes in the same price range.

Seniors often enjoy discounts on their homeowners insurance if they are over 55 and retired, or if they’ve been a long-term customer.

Strong home security in the form of security systems, alarms, gated communities, double locks on both doors, etc. often afford you lower rates.

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Insure Your House, Not the Land Under It

Consumers often overpay for homeowners insurance by including the value of the land that their home resides. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

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