Fighting Life Insurance Claim Denials Due to Smoking and the Contestability Period
When a life insurance policy is purchased, it typically includes a contestability period—usually two years—during which the insurer has the right to scrutinize the application for any misrepresentations. If the insured person dies within this period, especially if the insurer can prove that the insured lied on their application, the insurance company will often look for ways to avoid paying out the death benefit. One of the most common misrepresentations insurers focus on is the insured’s smoking habits. If they find that the insured person lied about being a smoker or failed to disclose smoking after the policy was purchased, the claim is often denied. However, our life insurance attorneys have a proven track record of successfully challenging these denials. In fact, we recently resolved a $500,000 AIG life insurance claim that was denied due to smoking, and we are prepared to fight any smoking-related claim denial.
The Impact of Smoking on Life Insurance Claims
Smokers are generally considered a higher risk by life insurance companies due to the associated health risks, including cancer, heart disease, and respiratory issues. As such, life insurance premiums for smokers are significantly higher than those for non-smokers. When an insured person applies for life insurance, they are typically asked about their smoking status. If the insured denies smoking or misrepresents their smoking habits, the insurer will likely conduct a thorough investigation if the insured passes away during the contestability period.
What Happens If the Insured Smokes After Purchasing the Policy?
It’s essential for life insurance applicants to be honest about their smoking habits when applying for a policy. However, if an insured person starts smoking after purchasing a life insurance policy, it can still lead to a claim denial if they pass away within the first two years of coverage. Insurance companies may argue that the insured person failed to notify them of the change in smoking status, and if they discover that the insured had taken up smoking after purchasing the policy, the claim will likely be denied.
While it may be difficult for the insurer to pinpoint when the insured began smoking, they will typically deny the claim if they find any evidence that the insured had been smoking, even if the onset occurred after the policy was purchased. This is why it is important for policyholders to inform their life insurance company if they begin smoking after the policy has been issued.
Why You Should Inform the Insurance Company If You Start Smoking
If the insured person was a non-smoker at the time of purchase but started smoking later on, it’s crucial to inform the insurance company of this change. While this may result in higher premiums, it will ensure that the life insurance policy remains valid and that the beneficiaries have a much better chance of collecting the death benefits when the insured passes away.
Insurance companies are required to maintain accurate records, and keeping them informed about the insured’s smoking status provides transparency. By notifying the insurer of this change, policyholders can avoid future complications when making a claim after the insured person’s death. Failure to do so may result in a claim denial, even if the death was unrelated to smoking.
What to Do If a Claim Is Denied Due to Smoking
If the insured person’s life insurance claim is denied due to smoking, particularly if the insurer argues that the insured misrepresented their smoking status or failed to notify them about starting smoking after purchasing the policy, it’s important to seek legal advice. Our life insurance lawyers are experienced in handling denied claims and beneficiary disputes. We can investigate the specifics of the case, gather evidence to challenge the insurer’s findings, and fight for the payout your family deserves.
We understand how devastating it can be to have a claim denied during an already difficult time, especially when the denial is based on smoking status. Our team is committed to ensuring that life insurance companies uphold their responsibilities and that beneficiaries receive the benefits they are entitled to. Whether the insured person lied on the application or began smoking after purchasing the policy, we are prepared to challenge any denial.
FAQ: Life Insurance Claims Denied for Smoking
Can a life insurance claim be denied if the insured person lied about their smoking status on the application?
Yes, if the insured person lied about their smoking status during the application process, the insurer may use this as grounds to deny the claim, especially if the death occurs within the contestability period. Insurers scrutinize all information provided during the underwriting process, and any discrepancies, especially regarding smoking habits, can lead to a denial.
What happens if the insured person starts smoking after purchasing the policy?
If the insured person begins smoking after purchasing the policy, the life insurance company must be notified of this change. Failing to inform the insurer could result in a claim denial if the death occurs within the contestability period. While premiums may increase, notifying the company ensures that the policy remains valid and avoids complications when filing a claim.
How can I fight a life insurance claim denial due to smoking?
If a claim is denied due to smoking-related issues, it is important to work with a life insurance attorney. They can investigate whether the insurer’s denial is justified, gather supporting evidence, and present a case to appeal the decision. Legal professionals can also challenge the insurer’s finding if they believe the claim was wrongfully denied.
Does the contestability period affect life insurance claims related to smoking?
Yes, during the contestability period (typically the first two years of the policy), the insurer has the right to investigate the application and claim more thoroughly. If the insured person misrepresented their smoking habits, the insurer may use this as grounds for denial. However, if the claim is denied due to smoking, beneficiaries should consult a lawyer to challenge the decision.
Is it necessary to inform the insurance company if the insured starts smoking after purchasing the policy?
Yes, it is important to inform the life insurance company if the insured starts smoking after the policy has been purchased. While this may result in higher premiums, it ensures that the policy remains valid and that the beneficiaries are more likely to collect the death benefit without complications.
Can life insurance companies deny claims based on smoking even if the insured didn’t start smoking until after purchasing the policy?
Yes, life insurance companies can deny claims if they find out that the insured person started smoking after purchasing the policy, particularly if the insured did not inform the insurer about the change. Insurers may argue that the insured violated the terms of the policy by failing to disclose their smoking status. If this occurs, beneficiaries can seek legal help to challenge the denial.