Life Insurance?

[liquidglass]

It really isn't stupid though, there are some insurance companies that will completely deny you if you claim non smoker and then fail the nicotine test so you are forced to go to someone else.

 

Also if you claim non smoker, and you die, they do a detailed analysis on your system, if they find normal/typical levels of nicotine for a smoker in you ... guess what, no pay out.

 

I've read countless complaints online that claim the same thing happened to someone they knew.

 

This only applies to the first two years of the policy in most states. A select few use 3 years. But the general rule is after 2 years any lie on a life insurance policy becomes true. So it's the insurance companies job to make sure they catch everything up front.

 

As far as payout. Companies will do 1 of 2 things. 1) they'll deny the claim if the death occurs in the first two years or 2) they'll run the numbers at your current payment under a smoker and pay out an amount equal to what you would have applied for if you had selected smoker on your application, again only within the 2 year window.
 

[liquidglass]

By the way, I'm a licensed agent it's part of the business I'm building, office, employees, all that jazz. So feel free to ask any questions about Life insurance rules.

 

Also companies have three different rates (depending on the company)

1) smoker: has smoked a ciggerate in the last 12 months

2) occassional-tobacco: smokes 13 or less cigars within the past 12 month period, this can also apply to chewing tobacco.

3) non smoker: doesn't use either, doesn't chew, and does not use nicotine products

 

 

On all my life insurance applications I've selected non-smoker, i've done the paramed (blood, urine, mouthswab) and it's never registered as a smoker in my experience.

 

By the way the mouthswab is how they detect nicotine/if you smoke. The blood analysis isn't used for nictoine generally.