Tobacco Rating

[mkd1204]

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??

 

[lqdirect01]

You can get Standard Plus with American General after one year. After two years, you can get Preferred at Protective.

 

[wfingsc]

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??

Why not have them underwritten as a smoker immediately with an ART, then switch to a longer duration after 1 year has passed.

 

[WinoBlues]

Why not have them underwritten as a smoker immediately with an ART, then switch to a longer duration after 1 year has passed.

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.

 

[wfingsc]

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.

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.

 

[WinoBlues]

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.

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.

 

[mkd1204]

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.

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.