Reader’s Question:

Six months ago, I was offered and had bought a life insurance non smoker rate at a total insurance coverage of $50,000. I haven’t been smoking for at least five years when I bought that life insurance. Last week, I was in a party and the urge to smoke came to me. And I did smoke some cigarette at those time. Can I inform my insurance company in California and tell them of my situation and ask them to increase my policy coverage?

Oliver

Los Angeles CA

The simple answer to your question is no. You definitely cannot ask your insurance company to increase your coverage in your life insurance non smoker policy because you are once again a smoker. Let’s go through this detail by detail.

When you applied for the life insurance in California, you have not been smoking for more than five years now. Your insurance company, just like any other life insurance companies, will definitely give you the life insurance non smoker rate. Now, your insurance company issued your insurance policy with a signed contract agreement of a $50,000 coverage. If you read your policy, almost all of the insurance companies will have a condition that premium rates will not be increased after the issuance of the policy unless it is due to fraud and of misrepresentation on the application. This means, that they cannot normally increase your coverage just because of the increased risk you have, which is being a smoker. In short, your insurance company cannot do anything to change the premium rate you have to pay since it has been put down into writing and agreed upon already.

However, if you let your life insurance non smoker policy lapse, meaning you will not be paying the premiums due, and you want to reinstate your policy, you will be subject to a re-underwriting by your insurance company based on your present status. In this case, you may have to pay a higher premium rate due to the increased risk due to your smoking habit.

Another option, although more costly, is to purchase another life insurance. Although you will get a higher insurance coverage, you will also have to pay a more expensive rate than your previous one. Fortunately, there are some niche insurance companies that specializes in insuring nicotine and tobacco users. These niche companies can offer life insurance for smokers at a non-smoker rate.