Know anything about life insurance? I need advice.

[Dirty Hippie]

My conscience is bothering me. I recently bought 200k in life insurance. I was asked routine questions and I answered one of them falsely.

I was asked if I had smoked within the last year. The truth is, I quit but only a few weeks ago. The agent actually encouraged me to go for the lower non-smoking rate.

Now I feel stupid. I am paranoid about croaking and the company not paying because I did not tell the truth and pay the higher rate.

I'm thinking I should call the agent and tell him to redo the policy.

Anyone have any experience that could shed light on this situation?

[murielm99]

1. Usually, their definition of a non-smoker is someone

who has not smoked for a year.

I was an insurance agent for awhile, but I hated it.

Didn't they ask you to sign anything?

I think you should tell the agent.

[Worst Username Ever]

2. You are definetely going to want to redo the policy

if it has only been a couple weeks. Did you have a physical for this one? If so, they will know you smoked anyway when the results come back. If not, if it is found out that you smoked, even if you die next week in an auto accident, the policy is worthless.

[Dirty Hippie]

4. No physical

They did the mouth swab but I was ok.

I think I definitely need to redo it.

Peace of mind means more to me than money.

[Spinzonner]

3. Does the policy have a withdrawal without penalty period

If so and you're still within it, you could cancel without getting into the reasons

[papau]

5. After 2 years the company has no rights in most states. Mass ins co

have gotten around this by threatening to use the "Good Health Clause" and have bluffed their way to a partial rather than full payment. But there is not, even in Massachusetts, an actual case where there is a judgement that refuses full benefits after 2 years.

During the first 2 years fraud causes a return of premium, except I would bet California would find a way to pay the full amount.

At the very least, document that the agent told you (a CYA memo to file signed by wife?) to say you were a non-smoker based on your 5 weeks not smoking.

If 200,000 is the amount you need, the cheapest route may be to take out a smoker term ins policy in addition to your non-smoker, and plan to drop it after 2 years when your non-smoker can no longer be challenged.

The cleaner alternative is to get the policy reissued as a smoker, and plan on asking for a rewrite after you are officially by their standards a non-smoker.

Cleaner yet may be a start over with a new company if you are in the free 30 day period and can get your money back