Insurance Blog, Home Insurance Blog, Life Insurance, InsWeb Insurance Blog

Whether it is going to happy hour with friends, sharing a bottle of wine at dinner, or downing a couple beers while watching a favorite team, alcohol plays a significant role in the lives of many Americans. In fact, it’s reported that 64% of Americans drink alcohol regularly. Apart from alcohol abuse, drinking is a pleasure that seems relatively innocuous to most people, however; life insurance companies see it differently. Like smoking tobacco, alcohol consumption can easily affect how much you pay for life insurance.

Like your blood pressure, cholesterol level, and your 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 generally 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 quoting application, you may 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. It’s believed that there is a significant correlation between DUIs and alcohol abuse, therefore, insurance companies adjust premiums accordingly. Be aware that DUIs remain on driving records for up to 7 years in some states. Finally, 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 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. So as you begin to comparison shop for the best term life insurance policy, consider these fundamental tips:

1. Buy 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 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 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 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 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.

Posted by InsZo at 11:46 AM | Permalink

As we head into the summer, gas prices continue to reach record breaking highs. Remember the days you could fill up your vehicle for around $18? As of last week, gas prices average $3.22 per gallon nationwide (as of 6/4/07). That’s 12 cents more than the previous week and 40 cents more than last year.

While we can’t do anything about the price of gas, we can do something about the frequency we stop to fill-up. Below you will find six proven ways to save money on gas during the summer months, however; recognizing that the cost of driving is still going to be outrageous, you can easily offset the extra expense by saving on your monthly car insurance bill instead.

1) Drive at Steady Speeds (Save $0.10 to $0.20/Gallon)
It may sound a bit like an elementary drivers-ed lesson, but driving steadily at the speed limit is the best way to control gas consumption.

Experts estimate that for every 5 mph you drive over 60 mph, you are effectively adding $0.10 to $0.20 to each gallon of gas you purchase. As stops and starts negatively affect your gas mileage, try to avoid stop-and-go traffic whenever possible. Similarly, try to control the horses in your engine and limit your rapid accelerations.

2) Keep Your Car Tuned-Up (Save 11.4 Miles per Gallon)
Some mechanics estimate that a poorly tuned engine can use up to 50% more gas than one that is running well. In fact, according to the National Car Care Council (carcare.org), if you combine under-inflated tires, a dirty air filter, worn spark plugs, a worn oxygen sensor, dirty oil, and a loose gas cap, you could be loosing up to 11.4 miles per gallon of gas.

3) Keep Your Tires Properly Inflated (Save 3.3% on Gas)
Underinflated tires will cause you to consume more gas. The U.S. Department of Energy says that drivers can save an average of 3.3% by keeping their tires properly inflated. The proper inflation for your tires should be specified in your owner’s manual.

4) Cut Down on A/C and Extra Baggage (Save 2% on Gas)
While on the highway, closed windows decrease air resistance, but when you are driving down city streets and in stop-and-go traffic, it’s a good idea to open the windows rather then run the air conditioner. Additionally, limit the amount of stuff you keep in your trunk or on your roof racks. An extra 100 pounds in your trunk or on your roof rack, reduces a typical cars fuel economy by 1-2%.

5) Try to Minimize your Driving
Try to plan one long trip instead of several short trips. If you can, try to carpool or use alternate forms of transportation (busses, trains, subways), or ride your bike or walk to nearby destinations. These are the more obvious ways to save gas and they also have a positive effect on the environment. You can also try to stagger your work hours so that you aren’t driving in prime traffic hours.

6) Consider Buying a Smaller, More Fuel Efficient Car
Smaller cars are not only often less expensive and cheaper to insure then larger cars, but they also use less gas (because they are lighter). Also cars with automatic transmissions get an average of 5 miles a gallon less then manual transmissions. Six-cylinder engines get about 4 to 5 miles per gallon less then four-cylinder engines. Also, certain hybrid cars can get up to 48 miles to a gallon of gas.

Posted by InsZo at 11:13 AM | Permalink

Dogs have become an important part of the American family; considering that 63% of all households have at least one dog. Although dogs bring priceless memories and convenient protection, the costs of owning one are certainly no secret: food, veterinary bills, treats and even kennels. Dogs however, have a classic hidden cost to home owners though; they can affect the cost of a homeowners insurance policy.

Just like adding a swimming pool to your homeowner's policy, owning a dog is a policy underwriting factor that insurance companies take very serious. Carriers aren't concerned that Fido will necessarily flood the house by chewing a garden hose or suddenly break every window in the house without cause, but rather that they will inevitably bite somebody. Simply put: dogs are liability risks to homeowners policies.

According to the Centers for Disease Control and Prevention, there were approximately 4.7 million dog bites in 2005 accounting for roughly $317.2 million in insurance claims. Who would know this more than the mail carrier? In 2004, the US Postal Service reported over 3,400 dog-related injuries — that's an average of 11 mail carrier injuries every day!

Homeowners and renters insurance policies typically cover dog bite liability, as long as your dog is disclosed to your insurance company. Insurers may charge more or even deny your application if you own specific types of dogs. These are determined by the frequency of dog bites for the breed, whether they are large dogs that can inflict a lot of damage, and the breed's general reputation. Some of the breeds that raise red flags for insurers are Pit Bulls, Rottweilers, German Shepherds, Siberian Huskies, Malamutes, Doberman Pinschers, Chow Chows, Great Danes, Saint Bernards, and Wolf Hybrids.

Adequately insuring a home with a dog is a common oversight by many homeowners. Some try to save money by omitting the information from the application, and others simply neglect to report the pet since they're already committed to an affordable policy. Don't be foolish, the only decision you can make is to disclose the dog to your homeowners insurance company since any claim will most likely be denied if you don't. Knowingly omitting relevant liabilities to your insurance company constitutes grounds for policy cancellation, which is certainly not in your financial interests.

You may find that adding a dog to your homeowners policy will be negligible to your premium, however, if the opposite is true, it's time to shop around for new coverage. Homeowners insurance rates can vary by hundreds of dollars between carriers, as extra charges for dogs can also differ dramatically from company to company.

Posted by at 9:50 AM | Permalink | TrackBacks (0)