ex smoker and life assurance

Magi74

Quick(ish) question - I've been off the smokes for 7 months now :j and (with luck) I'll stay off them for good!

- is it worth waiting until 12 months to get the better price for being a "non-smoker"?
- Get a policy now (about £50,000) as a smoker then get another policy once the cheaper rates become available? End up with 150k cover?

The immediate response is "it depends" I guess . I'm happy with the terminology that's being used so I under what level term means etc. But my life cover is nowhere near good enough, so my basic outline now is get 50k worth of cover now via an online broker, then add 100k of something more "comprehensive" via an IFA.

Thoughts?

stephenni1971

You could consider getting what is right for you now at smokers rates and making sure your adviser uses an insurer who will allow you to make a declaration you are non smoker after a year.

Magi74

Thanks Stephenni - I assume that I need to watch out for the following:

- 50k policy as a smoker today
- 150k policy as a non-smoker in 5 months time

If the worst should happen, I need to have covered the fact that I'm a non-smoker now (but can't declare as such) - making it possible for me to take the 150k policy out later and not run into any issues for claiming on the policies.

Hopefully that made sense!! :rotfl:

stephenni1971

Thanks Stephenni - I assume that I need to watch out for the following:

- 50k policy as a smoker today
- 150k policy as a non-smoker in 5 months time

If the worst should happen, I need to have covered the fact that I'm a non-smoker now (but can't declare as such) - making it possible for me to take the 150k policy out later and not run into any issues for claiming on the policies.

Hopefully that made sense!!

It doesnt make sense!

If £200k cover is what you need - take it now.

Then in 5-6 months if you choose the right insurer make a non smoker declaration ( you may also be asked to provide a mouth swab for testing ) and your smoker rates will reduce to non smoker rates.

ACG

Or you could write a policy now, then in a few months replace it.

Magi74

Ah - with you! I had turned this into 2 policies (for 50k and 150k) so that I had cover now. Never entered my head to just increase it/declare as a non-smoker in a few months time.

ACG

not all companies will allow you to change it in a few months. So if this is the route your going down you need to check with the insurance company before hand.

Magi74

Cheers ACG (and stephenni). I know enough to know I need to learn more.

Some of the T&C documents do suggest that increasing the amount of cover (as well as adjusting the term of the plan) is not a problem (ofc there could be a cost element to factor in). Bit more leg work to make sure I can do what I want - 50k policy as a smoker costs the same as a 100k policy as a non-smoker, so staying off the smokes is even more beneficial to me health!

weighty1_2

Magi74,

It's unlikely you'll be able to find out which companies will allow you to change from smoker rates to non-smoker rates via the web, or even the T&C's of the plan, as this is predominantly an underwriting issue.

Whilst most plans have guaranteed insurability options included (GIO's) these can only normally be exercised if you fit the criteria ie. birth of a child, increase in a mortgage, marriage. Once a plan is in force the insurance company is not at liberty to let you change to non-smoker rates so it is unlikely to be in their T&C's. Some will let you do this simply because it is more cost effective than re-underwriting a policy in full, others insist on a client re-applying in full.

magpiecottage

Go to an IFA and explain the situation.

Purchase a "smoker" policy now for the entire term you will need it. This will be more expensive than a short term policy but if your health deteriorated in the interim you might then find you were uninsurable.

Then in the New Year go back to the IFA and get a new policy.

This should work to his advantage as well because he will get commission on the first policy for a few months as well as on the replacement. Just make sure he is not going to try to charge you for "clawback" on the first one.