how do annuity companies know if you are a proper smoker

kinksfan

how reliable is the test to determine if you have been smoking properly for years or whether you have just had one tab for the test to enjoy higher pension?

dunstonh

Apparently it is quite reliable. They carry out a cotinine test and that would not be fooled by a smoke before they arrive. The test can also tell the difference between passive smoking and actual smoking. If it can do that then one cig is not going to make a difference.

Insurers have been increasing the number of tests they do because of the increasing number of fraudulent applications. Getting caught is not just damaging for the annuity. As an annuity is an insurance product, if caught, you would have to disclose the fraudulent application on motor and household insurance applications or any other insurance contract. That would see many companies refuse to offer terms and those that do will make you pay more for it.

The insurer can also report it as a crime if they wish.

I am sure some people get away with it but the consequences of getting caught can be significant.

property.advert

I think there is a bit of a problem here. You smoke and your potential annuity payer tests you and says you don't. Now before they start dragging you down to see Old Bill, I think they may well have to think carefully about just what they accuse you of.

Now we all know that someone with an 80 a day habit is not going to be the same as someone who has a few now and then but when we look at the only real public information we have, which is from when you want to take out assurance, we see that their questions ask whether the proposed insured has smoked in the last 12 months. They don't usually go asking how many or for how long etc. Thus, if their qualification as to whether you are a smoker is that you have smoked tobacco products in the last year, it would appear reasonable to use the same criterion when applying for an annuity.

They can do all the tests they want and are free to make an offer or not but I do not see that they are able to call you a liar and a fraud on the basis of the information supplied.