If the insured dies within two years of purchasing life insurance, this is usually within the contestability period. During this period, the insurance companies will usually do whatever it takes to avoid paying out the benefit. If they can determine that the insured lied about anything on the application, especially their smoking habits, they will deny the claim. We will fight any denial for smoking, and just resolved a $500,000 AIG life insurance claim denied for smoking. We can fight any life insurance claim denial.
Additionally, if the insured started smoking after purchasing a life insurance policy and passed away within the first two years, the insurance company will likely deny the claim if they find out. Technically, the insured should have notified the company that they started using tobacco.
What To Do If Insured Starts Smoking After Purchasing Policy
As noted above, a life insurance claim could be denied if the insured starts smoking after they purchased life insurance. Keep in mind that being a smoker does not mean you can’t purchase life insurance. It generally just means it is going to be much more expensive. However, if the insured purchases a non-smoking life insurance policy and then passes away and the company finds out that the insured has been smoking, this will be a reason for them to deny the claim. This can happen even if the insured didn’t start smoking until after they purchased the policy. It can be difficult for the life insurance company to determine when the insured started smoking, so they’ll often deny the claim. If the beneficiary believes this is incorrect, they will have to retain our life insurance lawyers.
For this reason, if an insured is a non-smoker when they purchase the policy and then start smoking later, it’s a good idea to inform the insurance company of this change. While the monthly payments might increase, it gives the beneficiaries a much better chance of actually collecting the payment when the insured passes away. However, our life insurance attorneys can fight any denial.
Our life insurance lawyers fight denied life insurance claims and beneficiary disputes.