Life insurance policy and smoking

[sirrob28]

Hi all,I live in upstate new york and my father just passed away. I am now the executor of his estate and all that fun stuff. Upon getting all the life insurance info together I had noticed that his policy for $50,000 was a non-smokers policy. He is a smoker and I can remember when the sales woman came to our house to draw up this policy they were all sitting at the table drinking coffee and smoking,including the sales woman!. There was a time where he had quit because of his first grandchild for 7yrs, then started back up when my mother died. He has been paying on this policy for almost 17 yrs. My main concern is that his cause for death was an aortic aneurysm and the Dr. checked the box that tobacco was a factor in his death. Both my siblings are worried about their money and my concern is I just want to have enough to cover all the funeral cost. Any idea of what my happen with this?

 

[JETX]

Any idea of what my happen with this?

Yep. From your post, it is LIKELY that they will deny his policy coverage.

 

[ErinGoBragh]

Hi all,I live in upstate new york and my father just passed away. I am now the executor of his estate and all that fun stuff. Upon getting all the life insurance info together I had noticed that his policy for $50,000 was a non-smokers policy. He is a smoker and I can remember when the sales woman came to our house to draw up this policy they were all sitting at the table drinking coffee and smoking,including the sales woman!. There was a time where he had quit because of his first grandchild for 7yrs, then started back up when my mother died. He has been paying on this policy for almost 17 yrs. My main concern is that his cause for death was an aortic aneurysm and the Dr. checked the box that tobacco was a factor in his death. Both my siblings are worried about their money and my concern is I just want to have enough to cover all the funeral cost. Any idea of what my happen with this?

JETX is correct. Your father would have signed, at the time of taking out the policy, a statement attesting to the fact that everything in the application was true. The fact that he signed off on being a non-smoker when he was not a non-smoker, and did not later question it when the policy was issued, means that the policy was issued under fraudulent circumstances and your father's estate is due nothing if the insurance company catches on. Even if your father signed off the correct application and it was the insurance companies mistake, he was still obligated to contact the policy to question the issuance of the non-smoker rating.

 

[sirrob28]

wow

well this is really tough to swallow that he paid into this thing for 16 yrs all for nothing. What do you think the company will do? I have talked to some people who say they will pay back just what he put in, pro rate the policy like he was a smoker or nothing at all? I sent all the paperwork in so we will find out in a week or so.Like i said tho I think when he took the policy out he had quit, but when my mom died he started again but how could you ever proof that?

 

[ErinGoBragh]

well this is really tough to swallow that he paid into this thing for 16 yrs all for nothing. What do you think the company will do? I have talked to some people who say they will pay back just what he put in, pro rate the policy like he was a smoker or nothing at all? I sent all the paperwork in so we will find out in a week or so.Like i said tho I think when he took the policy out he had quit, but when my mom died he started again but how could you ever proof that?

Where did you say that? You said that they were all sitting around the table smoking when the policy was taken out, and that he subsequently quit later in your original post.

The insurance company could do a number of things. But they do reserve the right to pay out nothing at all. Only time, and what the insurance company does, will tell. I DOUBT they will pro-rate the policy as if he was a smoker though- there is a large disparity in premium payments between a non-smoker and a smoker.

 

[sirrob28]

oh the confusion

Sorry about the confusion Erin. He did quit but I think it was right after the policy went into effect. This is all according to my sister because I wasn't living in the area at the time. I do remember he said he was going to because of my daughter's birth and he started back up when I lost my mother and my brother in one year due to cancer. I will let you know how this whole thing pans out.

 

[justalayman]

So, when he signed the app he was actually a smoker and he stated on the app he wasn't. There is a problem with that.

Both my siblings are worried about their money and my concern is I just want to have enough to cover all the funeral cost

.

Unless the estate is the beneficiary for the policy, the funds will not be available for the funeral costs unless the bene's are willing to pay out of their share of the policy payout.