life insurance

[tkrusz]

What is the name of your state? Michigan What if we have had a group universal life policy for many years and my husband was not a smoker but, in the last couple of years has begun smoking again? The insurance company has never sent us a form to update information and I never even thought of it til recently.Is it misrepresentation if it was true at the time but changes later? Could they deny my claim if my husband dies of a non smoking related illness or accident? What if it was a smoking related cause of death? Thank-you.

 

[ALawyer]

First, if the statement was true when made, and there was no other misrepresentation, then the insurer is bound by the policy. MOST insurance companies ask the smoking question in such an explicit way that a smoker can not inadvertantly claim she must have misunderstood the question.

Second, if the policy has been in force at least 2 years it is nearly always incontestible.

Some term policies, however, are for a stated period and at the end of the term the insured either must submit a new application to qualify for a preferred rate or the rate goes to the moon or the policy ends.

Most insurance companies do not factor in the possibility that anyone who was smart enough never to smoke for 20-30-40 years will be stupid enough to take up so deadly a habit later on. (It almost doubles the risk of permature death.)