Question about life insurance and former smokers

[WinoBlues]

Many non-medical policies cap out at 25-50K of death benefit.

No medical exam policies generally are graded death policies meaning that if you die in year 1 you get back the premium paid plus interest, die in year 2 you get less than the death benefit or just your premium back.

Negative

Many non-medical policies cap out at 25-50K of death benefit.

Maybe $1,000,000.00

It is going to take a few weeks for any tests and an offer for insurance.

Accelerating non-med could be as fast a few minutes or a few days.

Keep up with the non-smoking and reapply in 2 years for a larger death benefit as a non-smoker or have the company rerate the current policy as a non-smoker and the premium will go down.

2 years from their stop date. Not app date.

(You could also raise the death benefit and keep the old premium)

Many if not most companies will not allow you to do that. _maybe_ with a GUL, However, it will require new underwriting. Then they will underwrite the whole face amount, not the increase.

I Just did the tobacco to non-Tobbacco for a client last month.

 

[WinoBlues]

Some of the policies I saw online said one year quitting was considered non-smoking.

Maybe, however, you are asking for a set parameter such as non-med. Now, if you also add a lower costs that will tighten up the options. I would speak with an agent.

Also if people contact you in private beware. Agents do not have a fear of answering your questions in the open. Do not fall for the let's get you started and see where this goes. When it comes back higher they will say "OK Joan, Let's go ahead and take this one and I will get back to you when I find something better"

Good luck

All IMohsoHO

 

[ocnjgirl]

Now I'm confused, lol! Winoblues can you explain what info was incorrect about the death benefit in those policies?

What would a typical premium range be for 54 year old smoker with no real health issues (he does have a hernia, not sure if that counts). I have to find out height and weight but he's not overweight. We only have his income right now as I was laid off in October and still looking (harder in my profession at 58, new grads are cheap and plentiful) and I'm already worried about the bills as my unemployment ends end of month. I was really hoping it was long enough to get a non-smoker rate but I guess not.

 

[WinoBlues]

Now I'm confused, lol! Winoblues can you explain what info was incorrect about the death benefit in those policies?

Sorry, not sure what you are asking. Quote the part you are confused about so I can answer.

I will give you a sample rate. No one can give you a definite rate until they go through the app and it goes through the company underwriting system.

Wait one.

 

[WinoBlues]

OK, the only face amount I saw you talk about was $250,000. So on a 10 yr term.

Best health (as in everything perfect, not usually the case):

Fully underwritten (exam) about $139mo with a couple of companies. Banner and a couple of others.
Non-Med (no exam) $142mo with SBLI, not the fastest or most reliable issue in my experience. -- $160mo with Sagicor super fast issue and they will reduce to non med. I did one last month.

Standard health

Probably $188 to about $270 depending on the company.

Now here is the thing. If he really is stopping smoking you want the Non Smoker rates as the long term rates and the smoker rates as just the short term rate you will pay.

Example: Non Tobbaco --
Sagicor is $49mo SBLI is $45mo $4. difference. I would go Sagicor because of the quick issue and I know they will reduce to non-smoker if he fits.

On fully underwritten:

Banner is $37mo Only about $8mo difference and would have taked 30-60+ days to issue.



From here the rates go up based mostly on health and length of time you want to be covered.

Without speaking with an agent it is all just internet speculation.

 

[DHK]

I don't understand why a claim would be denied if he died in an auto accident, can you explain that, Winoblues?

If you were a smoker, but you applied and got approved as a non-smoker... and it was determined that you were a smoker... that would be contested and may not pay out a claim for misstatements - regardless of the cause of death.

 

[ocnjgirl]

I was never considering lying DHK, I was asking what would happen if he claimed non-smoker within their timeline to be considered a non-smoker, but then developed a smoking related illness (from smoking for decades before).

Winoblues, thanks again. Will digest it all and come back with more questions, I'm sure.

Thanks to all who replied!

 

[DHK]

I was never considering lying DHK, I was asking what would happen if he claimed non-smoker within their timeline to be considered a non-smoker, but then developed a smoking related illness (from smoking for decades before).

Your concern makes sense. As long as the insurance company got the medical records, and the records (and blood tests) show that he stopped smoking for at least 12 months, then it's on the record.

As long as it's clear to the insurance company and clear in the medical records, everything will work out as it should.

 

[ocnjgirl]

But he didn't quit through a doctor, he quit on his own. So how do we prove when he quit?

 

[ocnjgirl]

Also, is what fedup said about no medical exam policies true?

"No medical exam policies generally are graded death policies meaning that if you die in year 1 you get back the premium paid plus interest, die in year 2 you get less than the death benefit or just your premium back."