Applying for life insurance as a tobacco pipe user
Apply through a broker. When applying for life insurance, be completely honest about any tobacco use. Whether you are a daily cigarette smoker or just smoke a pipe for 30 minutes at the end of a work week.
Your agent needs to know the facts so they can go ahead and set appropriate expectations.
If you lie about your tobacco use, your agent won’t know how to properly shop your case to ensure you get the best price. And your beneficiaries may end up paying the price.
If the insurance company discovers that you are a tobacco user, but states that you were not included in your application, the death benefit will be reduced.
You lied on your application and said you never used any tobacco products and were offered a 20 year $1,000,000 policy for $53 a month. During the two-year contestability period, the insurance company discovered that you are actually a daily pipe smoker. Your policy drops to a $175,000 death benefit instead of $1,000,000 because that’s what the $53/month smoking fee would cover.
If it is discovered after you die that you have misrepresented yourself, the life insurance company may refuse to pay the death benefit and only provide a refund of premiums paid.
It does not pay to try to deceive the insurance company.