Term Insurance For Smokers
When it comes to California life insurance and cigarette smoking, there is no one carrier or brand of coverage that one can predict as being the appropriate value. Though rates for smokers are at all times higher than non-smokers, the difference increases dramatically as one grows older. The carrier with the best value varies according to one’s age and gender.
What should you divulge about your smoking habits? The short answer is always be truthful because it is in your best interests to do so. Two drugs that insurance companies will constantly test for are nicotine and cocaine. Current use, along with second hand smoke can be identified through these mature tests. Remember that more often than not, there is a two year contestability clause per policy that handles fraud in the application.
Is there any company that provides non-smoker rates to smokers? This only pertains to permanent policies. If you have stopped smoking during that period of time, you have the option of continuing with the lower premium, or else the rate will increase to smoker rates.
Not all insurance companies consider cigar or pipe smokers to automatically fall into a smokers category, and the differences can be dramatic. This is also for people who use a nicotine patch to aid them in quitting smoking.
Most insurance companies will allow a non-smoker rating after one year of no nicotine use, and the rating can improve with time. A good agent will discuss your smoking history in detail prior to suggesting the best value for your needs.
In my experience, most smokers want to quit. In order to qualify for term insurance at non-smoker rates, former cigarette smokers must be nicotine-free for a minimum of one year. If you have recently quit, inform your physician and ask that an appropriate notation be made in your record.
If you find yourself in this situation, you may want to consider purchasing a 10 year term policy. This policy is often less expensive than a shorter term one, and there is no reason to pay for a longer guarantee.
Remember, you will generally be able to obtain a superior rating a couple of years later, as well as a lower premium, even though you are older. Consequently, in most cases, there is no reason to pay for a longer guarantee on a policy you plan on replacing.
Leonard Robbins in an independent California life insurance agent with over 25 years of experience helping nicotine users obtain the best price for their premium dollars. Contact him at LifeNet Insurance Solutions
