Tobacco Usage Look-back on Life Applications

alldaytuesdays · 08-18-2009, 01:41 PM

What is the typical tobacco use look-back for term life policies?

A lot of the companies I use have one-year lookbacks to get the lowest non-tobacco rating (i.e.standard non-tob).

Does anyone work with a company that has a shorter look-back than that for non-tob rating?

R. Paul Aguirre · 08-18-2009, 03:19 PM

John Hancock I believe has a program where a smoking client is given the standard rating and then two years from the policy date if he/she can show that they are tobacco free the policy will continue at standard rates, if they are not tobacco free then the rates will be changed to smoker.

dgoldenz · 08-18-2009, 04:00 PM

West Coast, Nationwide, and Aviva will give preferred non-smoker after 1 year.
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Originally Posted by R. Paul Aguirre

John Hancock I believe has a program where a smoking client is given the standard rating and then two years from the policy date if he/she can show that they are tobacco free the policy will continue at standard rates, if they are not tobacco free then the rates will be changed to smoker.

I believe this is only on UL policies.

pinky the brain · 08-19-2009, 10:13 AM

You have to specify the type of tobacco. Remember there are companies that will allow the proposed insured to smoke cigars or dip snuff, test positive for nicotine, and still give them non-smoker rates.

But if you mean cigarettes, 12 months is normal. A few companies go longer than that.

The JH u/w feature mentioned is only on permanent policies, but at older ages, the reduced mortality costs might still outweigh the front-loaded costs. Maybe not, but it would only take a minute to check.

wibroker · 08-19-2009, 11:56 AM

West Coast is best here - 1 year nicotine free is eligible for "preferred non-smoke" (fyi this includes patch.nicorette, etc). The AVIVA previously mentioned is 2 years to get "preferred NS rates - 1 year free and you get their "3rd best" class. Banner also goes "3rd best" class after 1 year tobacco free which you may want to consider if they don't meet West Coast's build or family history guidelines.