Smoker concerned with life policy claim

[TMan]

What is the name of your state? Georgia

I'm one of those smokers that can't seem to quit and stay quit. I purchased a term life insurance policy a few years ago during a period when I had quit smoking cigarettes. I filled out the application truthfully indicating I had been a tobacco user, had stopped smoking cigarettes, but was still an occassional pipe smoker. After the usual visit by the paramedic and blood test I was fully expecting to be classified a smoker, but to my complete suprise my agent came back with a nonsmoker policy. I questioned him at the time and he basically said it was all to my benefit and that even if the insurance company had made a mistake, once the policy was in effect there was nothing they could do to change it or deny a claim.

Well, as I eluded in the first sentence, since the policy was issued I have started and stopped smoking cigarettes several times. I am currently smoking and do plan to stop again shortly, this time for good. The due notice for the term life policy premium just came last week and my wife decided to use it as leverage to get me to quit smoking again. I'm not particularly appreciative of her tactics, but her motive is unquestionable and it has raised concerns as to validity of this policy. Obviously, if the policy could and likely would be contested and a claim denied due to the tobacco use we are essentially just throwing money away. Reading the policy however, I don't see anything obvious that would allow a claim to be denied for this or any other reason other than termination due to request or failure to pay the premium. In the General Provisions section of the policy the Incontestability clause states that it isn't contestible, except for fraud, after the policy has been in force for 2 years. And then there's an endorsement attached that eliminates the "except for fraud" clause.

So, your expert advise is greatly appreciated. Are we ok with this policy and I continue to pay the premium or do I need to terminate and buy a new one at much higher rates due to increased age and the tobacco use? Are there any other considerations or options to be considered?

Thanks,
TMan

 

[knotcops]

The policy will not be void because you started smoking again. You passed the paramed exam and completed the application truthfully, so don't worry about it.

I would suggest to you, since this is a term policy, that you look into converting it to a perminant whole or universal life policy before the term is up.

 

[HomeGuru]

The policy will not be void because you started smoking again. You passed the paramed exam and completed the application truthfully, so don't worry about it.

**A: how do you know? Did you read the terms and conditions in the policy?

 

[knotcops]

HG, granted, I have not read the terms and conditions of their particular policy. Generally speaking and using my experience from the policies I write, there would be no problem if he resumed smoking after the exam was completed and the application was filled out truthfully ie; "have you used tabacco products in the past twelve months".

This could be an issue however, if the term policy expires or lapses for non payment and they wish to reinstate it. The questions would be asked again and at that point he could be considered a smoker.

TMan, to be absolutely sure, contact your agent that wrote the policy. He/she will be able to explain it to you. If they cannot, you may want to look for another agent.

 

[Bigfoot]

knotcaps: Wouldn't the application have asked if tobacco products were used during the past 5 years rather than 1 year? And, if it was (for example only) answered dishonestly, and could be proven, wouldn't the amount of the face policy be decreased, i.e., the policy amounts paid would be adjusted for the amount of coverage for smoker rates?

 

[knotcops]

Bigfoot,
The question of tabacco use varies with the type of policy applied for. For instance, I have 5 differing levals depending on the amount of insurance, tabacoo user, no cigarettes in the past 12 months all the way to no nicotine in the past 3 years. No nicotine meaning chewing tabacco, pipes, patches etc.

The writer states that he indeed answered the questions truthfully and points out that he smokes a pipe. If he did answer dishonestly, and it could be proven, then yes the policy could be adjusted or cancelled. But that doesn't appear to be the case here.

He does need to contact his agent though, as that is the person that can answer to his particular situation.

 

[concerned1]

Many times, someone who is an occasional user (as the poster admitted to being) is given a smoking rating if there is evidence of nicotine in the urine. If he answered honestly, and no nicotine was found in the urine during the paramed exam, he qualifies as non-smoker. That is what people often get caught up in my expense with life insurance policies.