When it comes to California life insurance and cigarette smoking, the best value cannot be predicted. Although rates for smokers are higher than those for people who do not smoke, the difference is raised even more as one grows older. The carrier with the best value varies according to one’s age and gender.
What should you discuss when it comes to your smoking habits? The short answer: always be honest, as it is in your best interests to do so. Nicotine and cocaine are two drugs that insurance companies always test for. Through these sophisticated tests, both current use and second hand smoke are detected. Do not forget that there is often a two year contestability clause in each policy that deals with fraud in the application.
Will any company give non-smoker rates to smokers? Some carriers will give you an enticement to stop smoking by allowing premiums at a standard non-smoker rate for three years. This only pertains to permanent policies. If you have quit during that time, you may continue with the lower premium, or risk an increased smoker rate.
Insurance companies don’t all consider cigar or pipe smokers to automatically be placed into a smoker’s category, and there are major differences. This also applies to people who use a nicotine patch to help them quit smoking.
Most insurance companies will let a smoker obtain a non-smoker rating after one year of no nicotine use, which can improve as time goes on. A good agent will review your smoking history in detail prior to suggesting the best value for your needs.
In my experience, the majority of smokers want to stop. 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. It is usually less expensive than a shorter term policy, 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. accordingly, in most cases there is no reason to pay for a longer guarantee on a policy you plan to replace.
Leonard Robbins in an independent California life insurance agent with over 25 years of experience helping tobacco users obtain the best vaule for their premium dollars. Contact him at LifeNet Insurance Solutions