If you use nicorette gum you should ask yourself How does Nicorette affect life insurance underwriting?
If you’re using any kind of nicotine-based product, most companies are going to give you smoker/tobacco rates. Particularly if you have a paramedical exam and they find nicotine in your urine, it’ll certainly be smoker rates.
Also if you have a smoking cessation prescription within the last few years, they will find it during underwriting, and again give you smoker rates.
Most life insurance carriers consider any type of tobacco or nicotine use under a tobacco use rate classification which increases the cost of insurance. If the client does dip, chew, smoke cigars, or use a pipe, there are some life insurance carriers that will consider them as non-tobacco users, but it must be admitted from the get go on the application. Most carriers consider celebratory cigars as non-tobacco as well but, again, it must be admitted on the application. The new Vapes along with nicotine gum are deemed a nicotine product and are considered as tobacco rates with some carriers, so you need to know which carriers are more lenient with these products. Marijuana is considered under tobacco or nicotine rates as well.
Are there tests insurance companies use to see how long it’s been since you quit smoking?
Life insurance companies can use any one of four tests to determine if a person has smoked recently or not. Blood tests, urine tests, mouth swabs, and even hair tests (though they are not widely used in the life insurance industry) are all able to detect nicotine and cotinine (a by-product of nicotine) within a certain period of time.
The length of time these substances are detectable varies, depending on a number of factors, such as the height and weight of the applicant as well as how long it’s been since the last cigarette was “consumed” and how many were smoked.
It is important to note that if you are a smoker and you say you are not on your application, your death benefit may be reduced to only the premium payments made, plus interest, should you die during the contestability period (the typical contestability period is 2 years.) If your insurance company finds out you smoke within the contestability period, they will more than likely raise your rates to smoker’s rates and may even make you pay the difference on all previous premiums paid.
Even if you are a smoker, you shouldn’t put off purchasing life insurance. Life insurance is available for smokers, at higher rates than those offered to nonsmokers. Although your premiums will be higher, if you can quit for at least a year (some companies require 2 or more years), your insurance company should allow you to retake your medical exam to confirm you quit. If you pass, your premiums may be lowered to that of a nonsmoker. Be sure to check with your agent for the specifics, as they vary from company to company.
Life Insurance for Smokers Quotes at www.MintcoFinancial.com
Call us at 813-964-7100