Cigars and Life Insurance

[buildmybudget]

So I've applied for some life insurance and during the application I slipped up and mentioned that I have smoked a couple of cigars in the past few years. I've never smoked cigarettes. This sent my quoted price from $32/month to an actual policy cost of over $80/month because they designated me a "tobacco user." I'm so irritated that I went through the whole application and testing process to be given this ridiculous price! Does anyone know whether once you apply to any company the information is known to all companies? I'm wondering if I apply to another company and leave off that I've ever smoked a cigar whether I will get a more reasonable rate. Does anyone know? Thanks for the help!

[dczech09]

You could leave out the whole cigar thing but technically that would be falsifying the application. Life insurance companies have statutes of limitations. If sometime in that statute of limitations timeframe, the insurance company finds out you are a "tobacco user" whether its through a health test, or you getting hit with mouth, lung, or throat cancer, they can consider your application faulty and will not be liable for claims.

I know its BS that even if you smoke one cigar every other blue moon, you are still considered a tobacco user. But you have to realize that the risk of cancer, once you put that cigar on your lips, skyrockets.

The big thing is that overlooking what you may think is a small detail on a life insurance policy can definitely come to back to bite you. Avoiding these small details, while not fraudulent, can be a bad idea. Oh and remember, if you commit criminal fraud on a life insurance application, the carrier can deny a claim at any point in time (even beyond the statute of limitations). As it currently stands, life insurance companies cannot contest concealment on applicatons after the policy has been in force for 2 FULL years.

[Angio333]

It depends. If they are a member of a Medical Information Bureau (MIB) then it may be. I know that the MIB is used for health insurance, but I am not sure if life insurance companies use it.

The MIB is a non-profit organization that maintains medical data on applicants for member insurance companies. The information does not reveal the amount of insure requested or the action taken by the reporting insurance company. Insurance companies need more than the information provided by the MIB to reject an application.

Have you contacted the agent about the issue?

You maybe able to get the policy rerated as a non-smoker or get a quote from a new agent. Explain the situation to the existing and to any possible new agent. They should work with you. They can test you to see if you are a tobacco user. However, one cigar will show up depending on the last time you smoked. Some policies may even allow you to slightly lower your premiums after an extended period of being a non-smoker.

[gpoitras]

The one question I was asked...

Have you used any tobacco products in the past 12 months. This would insinuate regular users and those who have the occasional cigar. If you had a cigar 366 days ago, you can honestly answer "no."

[Robert742]

Hello, everyone! First post!

You did not slip up by disclosing you enjoy the occasional cigar, your agent did. You always want to be honest on an insurance application to avoid complications or denial if you have a claim. Your agent should have advised you of the proper rate for tobacco use for the company to which you applied before submitting the application.

However, some life insurance companies do not rate you as a tobacco user for smoking the occasional cigar.

An experienced independent agent that specializes in life insurance can help you.Independent life agents represent many insurance companies, and can find the best company for you. Contact a few local independent life agents(not agents that represent one company, such as Northwestern Mutual life, Prudential, Metlife, NY Life, etc.) and tell them your situation and what happened when you applied for life insurance, and listen to what they recommend.

It sounds like you applied for term insurance. A good agent sells term and permanent life insurance based on the client's needs. Bad agents push permanent life insurance that builds cash value as a supplemental retirement income to anyone able to afford it. Bad agents will also push to meet with you rather than discuss your situation over the phone. They will not want to leave your house without getting a check for a new policy.

Choose your life insurance agent carefully.

[Robert742]

Oh.and yes, life insurance companies use MIB reports to prevent fraud. So, any life insurance company will know you applied for and were issued a policy as a tobacco user. This is why you want to tell any agent what happened when you applied, so they can address the situation when you apply for life insurance again.

[buildmybudget]

Thanks everyone for the feedback. I did talk to the agent a few days ago and he was very upfront about getting this resolved. He said that it even states in the application that as long as my blood test didn't test positive for tobacco I should be approved as a preferred non-smoker despite admitting I smoke a cigar every now and then. Thankfully he seems like an honest salesman and even pointed out it was almost like a bait-and-switch. I was pretty pissed though as the policy was 4x as much as what was quoted. I'll find out shortly if he is right about the policy being reissued at the preferred non-smoking rate.

[Robert742]

I hope it is resolved to your satisfaction.


I'm curious. Which life insurance company?

[Hadwin]

I would suggest you to leave that company and try another one . The competition make the life easier in taking which insurance to take