The day has passed when a smoker could lie on their life insurance form about their habit. More and more life insurance companies are checking their claimants out in detail to assess whether they are truly non-smokers. For those that do not prove smoke-free, claims may be turned down rendering the life insurance policy invalid.
Insurance company Onlyinsurance.com recently found that those who do not smoke have a lower level of life insurance premiums. Smokers that die of a smoking-related illness are being told that the insurance company may not pay out if they are listed as a non-smoker.
Smoking affects both life insurance and critical illness insurance premiums, sometimes by as much as 50 per cent. Ian Durrell, of Onlyinsurance, was reported as commenting: "Smokers who declare they have given up but continue to smoke, no matter how infrequently, will be paying for nothing should they die from a smoking related condition. The policy simply wont pay out and their beneficiaries will be the losers."
Durrell continued: "Smokers will pay twice the price for critical illness cover than a non-smoker its a no win situation for the smoker, their nicotine addiction is tightening both their heart and purse strings."




