When completing a disability insurance you also have to be honest about the state of smoking. An interested party probably didn’t want to see it. Why don’t we help with the “tricks”. A practical example.
In the term life insurance It has been common practice for a long time: non-smokers get much cheaper insurance coverage than smokers. The background should be clear and it is now written on every packet of cigarettes: “Smoking is dangerous to health”.
Smoking not only promotes chronic but also acute respiratory diseases such as flu and colds. Compared to non-smokers, smokers are said to have more than double the risk of cardiovascular disease and double the risk of stroke. German Cancer Research Center.
Smoker status is also increasingly differentiated in occupational disability insurance
In recent years, more and more life insurers have introduced smoker status as a premium calculation function in disability insurance. As a result, insurers ask for information on smoking status in the application forms. For example like this:
In the past 12 months, have you actively smoked cigarettes, cigars, cigarillos or a pipe (this means consuming both snuff and nicotine using electronic vaporizers such as e-cigarettes, e-cigars or e-pipes)?
And just like any other question posed by the insurer in the question, this smoking status question must be answered correctly. Otherwise, the insurer can modify, cancel, withdraw or even contest the contract for many years to come.
Non-smokers: about 10% less than smokers
As a rough estimate, it can be assumed that as a non-smoker you will get your contract about 10% less than if you smoked. It was the same in our specific case. Now you can use our BU calculator to determine how big the difference is.
Changes in smoker status usually do not need to be reported during the contract period
Unlike term life insurance, most BU insurers do not need to be notified if the smoking status changes during the term of the contract. The exceptions are here general and the Life insurance dialogue. There, the change from non-smoker to smoker must be reported immediately, otherwise the insurer can reduce the BU pension.
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Our prospect BU: smoker or not?
When our prospect contacted us about disability insurance in the summer, she stated that she was a smoker. She had been smoking hookah for the past 12 months.
Due to existing allergies, we have opened an anonymous one preliminary risk investigation. The prospect claimed he smoked hookah once a month, but not in the winter. Fortunately, we found several insurers who offered acceptance on normal terms (for smokers).
After comparing the offers in detail, an insurer emerged and we provided the data subject with complete information about the consumer along with the insurance application.
Smoker status: Non-smoker for more than 12 months = non-smoker
Meanwhile, the interested party reported that the last shisha was 12 months ago. Also, she has no plans to smoke again in the future and asked if this qualifies her as a non-smoker. This in itself is not a problem. One should therefore only plausibly explain why one declares himself to be a smoker first and then a non-smoker. Because the invalidity insurance application is presented with reference to the (anonymized) risk assessment. Otherwise, the insurer’s acceptance decision would be too uncertain.
A corresponding explanation for the smoking status issue might look something like this, for example:
Used to hookah occasionally, but it’s been over 1 year.
This means that an application would be accepted after consulting the insurer about non-smoking conditions.
Why don’t we help with the “tricks”.
Surprise: our interested party did not want to sign the mentioned statement. One wonders why – right? Either the statement is correct (she told us so), so you can also sign it. Or it’s not true, then you should really leave it. When specifically reported, the data subject did not get in touch, even after several weeks of reflection.
Nobody is doing themselves any favors by providing false information to an insurer. This applies to unspecified pre-existing conditions, embellished job titles, and even incorrect smoking status. Anyone who thinks they can “fool” here often finds out that an insurer finds out. One of the famous stupid coincidences is usually enough. For example, if a pre-existing condition such as allergy gets worse due to smoking. In the worst case, the entire insurance coverage can hit you in the face. Incidentally, the colleague explained how insurers could try nicotine Walter Benda on his blog plastically described.
But when such a thing happens, the question usually isn’t ‘How bold was the policyholder?’ But rather ‘Who brokered the contract? Did an insurance broker put their financial well-being ahead of the consumer?’
We have an excellent reputation. Even with some insurers. We would like to keep this good reputation. We have therefore stopped processing the request from this interested party.