Tobacco Rating

Sep 1, 2015

  1. mkd1204
    Offline

    mkd1204 Expert

    Posts:
    66
    Likes Received:
    0
    Who is most liberal with getting a non tobacco rate? I have 57 year old who quit smoking 4 months ago. Needs $400k 10 yr term. What would be minimum length of time to get non tobacco rate? I guessed at one year but wondering if any carrier will do less??
     
    mkd1204, Sep 1, 2015
    #1
  2. lqdirect01
    Offline

    lqdirect01 Super Genius

    Posts:
    107
    Likes Received:
    0
    State:
    Florida
    You can get Standard Plus with American General after one year. After two years, you can get Preferred at Protective.
     
  3. wfingsc
    Offline

    wfingsc Expert

    Posts:
    30
    Likes Received:
    0
    State:
    South Carolina
    Why not have them underwritten as a smoker immediately with an ART, then switch to a longer duration after 1 year has passed.
     
    wfingsc, Sep 2, 2015
    #3
  4. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,157
    Likes Received:
    2,580
    State:
    California
    May be a good idea. As long as he stays a non smoker and as long as he does not become less healthy and term rates do not raise. Give him the option.

    Another is write the ten year with a company that will allow him to change to a non smoker later. Higher premium first year than the ART probably but within a a couple years the ART will most likely be higher.

    Give the options then ink it.
     
  5. wfingsc
    Offline

    wfingsc Expert

    Posts:
    30
    Likes Received:
    0
    State:
    South Carolina
    8 months paying on an ART will definitely be cheaper than 1 full year on a 10-year before asking for reconsideration.

    But you're correct in that all options should be addressed.
     
    wfingsc, Sep 2, 2015
    #5
  6. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,157
    Likes Received:
    2,580
    State:
    California
    Cheaper is not always better. It certainly can be, but it is not a certainty. I have clients that died that would have been better off buying a cheap term instead of the whole life plan that they bought. I also have a bunch of people that bought term 20 years ago that sorely regret it now. Because they neglected to die and will now pay much more.

    Personally I would be recommending they go the Smoker route. I would show them an ART or 5 year and if that is what they want, Cool, sign here. As they are signing they also will sign a note that I showed them the ten year.

    No right or wrong way to do it. Just different ways.
     
  7. mkd1204
    Offline

    mkd1204 Expert

    Posts:
    66
    Likes Received:
    0
    Thanks everyone for tips. I hadn't even thought to do ART. He has some other insurance in force that is convertible. This to cover a short loan so may do the trick.
     
    mkd1204, Sep 3, 2015
    #7
Loading...