by Insurance Maze » Fri Jan 11, 2008 02:06 pm
Some two months ago, you purchased a $100,000 life insurance policy. You have been a "Smoker", but at the time you purchased this life insurance policy, you had not smoked a cigarette in over two years.
Due to the length of time since you last smoked, the insurance company gave you their best insurance rate and issued your life insurance policy as a "Non-Smoker".
Last week, when you stopped at your local "Quick Mart" for gas, you just decided to buy a pack of cigarettes. Now, you are back up to your "pack and a half" smoking habit.
Here's the question:
Would you contact your insurance agent or company and tell them that they will have to increase your insurance premium because you are now a "Smoker"?
If "YES", why?
If "NO", why not?
Due to the length of time since you last smoked, the insurance company gave you their best insurance rate and issued your life insurance policy as a "Non-Smoker".
Last week, when you stopped at your local "Quick Mart" for gas, you just decided to buy a pack of cigarettes. Now, you are back up to your "pack and a half" smoking habit.
Here's the question:
Would you contact your insurance agent or company and tell them that they will have to increase your insurance premium because you are now a "Smoker"?
If "YES", why?
If "NO", why not?
Posted: Tue Jan 15, 2008 05:49 pm Post Subject:
Just one point, Insurance Maze...
Once a life insurance policy has been in force for 2 years, it's then "chiseled in stone" (fraud being an exception).
In just about every state, even FRAUD is subject to the two-year incontestability limitation. Certain riders do NOT have a time limit, but the "primary contract" is generally 2 years for everything. The only thing that will take out a life insurance policy base coverage after 2 years in non-payment of premium
How about THAT, Lori! :D
InsTeacher 8)
Posted: Wed Jan 16, 2008 10:16 am Post Subject:
I'm floored! Thank you both for this information....So basically all a life ins. adjuster has to do (if policy has been in force for two years) is make sure the person is dead...and pay the beneficiary, right? What a gig!
Posted: Wed Jan 16, 2008 02:34 pm Post Subject:
lol. All you have to do is die,right? I posted a question similar to this.My question was, if I stopped smoking 3 years ago ,was this long enough to be considered a non smoke on an insurance policy. I already had my question answered though.Does this also apply to health insurance?
Also After reading all the posts on here ,you all have given be a new perspective on insurance rates.I always hated the agent thinking they were trying to squeeze us for every cent they could get...lol Now I can see the whys of it. Thanks for the enlightenment guys.
{ If the deceased insured, who died of a massive heart attack, originally told the insurance company that he/she had "never" had any type of heart condition or heart disease, but the company now finds that he/she had a "stent" placement a year before the policy was issued, the claim could be denied and in this situation, probably all premiums paid would be refunded, like the policy never happened.
But again, this would be the insurance company's fault to the insured's family. } That is truly unfair and one side to blame an agent for that.It is clearly misrepresentation on the insured part.
Posted: Sat Jan 19, 2008 10:19 pm Post Subject:
I don't know if I would tell them or not. I would have to ponder the what if scenerio that Lori brought up. How much does it raise the rate? Probably a pile, I would have to think about this one.
Insurance maze are you coming back?
Posted: Sun Jan 20, 2008 03:08 am Post Subject:
Where did insurance maze go? Not really ,you have to die.
Posted: Tue Feb 05, 2008 10:50 pm Post Subject: Chewing Tobacco
Does chewing tobacco carry the same weight as smoking? I'm a PA and rarely see medical complications due to this, especially when compared to smokers. Most of the people I take care of are smokers. If my spouse were to start up again in the 2 year grace period and died of mouth cancer 4 years later, would be have a problem with the policy? The addiction is very strong for some and can become an issue for them at any time.
Posted: Tue Feb 05, 2008 11:58 pm Post Subject:
I would think that tobacco use is tobacco use.
Posted: Thu Feb 07, 2008 10:02 pm Post Subject:
Yes.
Posted: Sat Feb 09, 2008 04:29 am Post Subject:
Chewing tobacco, in some cases, is even more harmful than regular smoking.
A bit off topic, but about 10-15 years ago, CNA had a term policy called "smoker's choice." If you were a smoker, you received nonsmoking standard rates for three years. The canned that policy as very few of the smokers stopped smoking. CNA had some interesting twists with their policies.
Posted: Thu Jun 05, 2008 06:49 pm Post Subject:
Imho it's the responsibilty of the policy holder... he or she should notify the agent or insurance company... reason? Cause the risk significantly changed.
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