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: Mon Jun 09, 2008 08:06 am Post Subject: Thanx for your contributions..
Hi beatuplunchbox,
Your post has been shifted to the following page to generate a better user response to it:
http://www.ampminsure.org/health/incontestability-clause.html
Regards,
Lakemen
Posted: Sun Jun 15, 2008 06:21 pm Post Subject:
For me, my answer would be NO. Why? because it would increase my insurance premium. As long as I don't have smoking related diseases, I won't bother to tell them. :D
Posted: Thu Aug 07, 2008 05:35 am Post Subject:
That is why some textbooks use "one way street" to describe the manner how life insurance companies deal with change of risks before and after insurance application.
When applying for life insurance, if a person has medical conditions and is subject to premium loading, he can request insurance company to review his premium rate if in later years he shows improvement in his heath condition.
Similar requests can also be made by a person who when applying for life insurance is subject to premiuim loading due to occupational risks or smoking habits.
On the other hand, if a person is at standard risk when applying for life insurance but starts to develop some heath problem or picks up smoking habits in later years, he is not required to pay higher premium.
Posted: Sat Jul 11, 2009 08:36 pm Post Subject: ever on life insurance qustions
when I was asked if I EVER smoked, i said i tried it as a teen so maybe 1-2 cigeretts were smoked. the agent checked NO and I signed the paper that it was true to my knowledge etc. but I mean NEVER as NEVER and I feel guilty about this---what can I do now?? that happened as a teen and I was 51 when i signed this paper
Posted: Sun Jul 12, 2009 01:04 am Post Subject:
That agent was a fool. He should have put the truth and you would have been considered a non-smoker. He was risking his job. I wouldn't worry about it.
Posted: Tue Dec 08, 2009 09:16 pm Post Subject: when is the insurance company at fault?
If the company insure a 60 year old man, that claims he never been to a doctors. But he had seen a doctor a few months prior.
The insurance company underwriter procedure indicated that a policy on a 60 year old require a para-med, and speciman. The agent wrote the policy up for non med. The company recorded that a para-med was performed.
The 60 year old died within 21 months of having the policy. Claim denied for misrep. It appear to me that both the insurance company and the 60 year misrep. If the compaany had followed procedures the would have more information. They really should pay for NOT DOING THEIR JOB.
Posted: Tue Dec 08, 2009 10:05 pm Post Subject:
The result would have been the same with or without the paramed. What's the difference if the insured made a misrepresentation to the agent or a paramedical examiner?
Posted: Wed Dec 09, 2009 09:56 pm Post Subject: best companies to get Life Insurance
this rating (link removed by moderator per terms of TOS -InsTeacher) shows top rankings for you to decide where you want your policy
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