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Posted: Fri Jan 12, 2018 11:52 am
I'm considering getting life insurance but I have a question - I smoked for a few years (I dont know when I started but it was pre-16, although not sure if that should count as I probably went through a pack of 20 in a week) then started to quit when I was twenty, and was very off and on for a year and a half, and have been nicotine free now for a year. How much will this affect the cost of life insurance? And, while I'm certain I'll get a lecture or two just for asking, what're the repercussions if I didn't disclose my smoking history? Would they just not cover me for any smoking-related illness (which I would say is severely unlikely due to my age etc.) or what?
Re: Life Insurance
Posted: Fri Jan 12, 2018 5:50 pm
Firstly there are 2 types of life insurance
1. Protection Insurance . This pays a lump sum to your dependants if you die and may also pay out for injury depending on the terms. You get no payment at the end but is very cheap especially if you are young, use this if all you want to do is provide for your family if you die, say to pay off the mortgage.
2 Investment insurance. This does pay a lump sum at the end of an agreed term or if you die before, there are also bonuses added according to the stock market performance. It can be a good way to invest for the long term and over 25 or 30 years add up to a nice nest egg. The sales person will get commission so will be quite keen to get you signed up.
Some products combine the two and there are all sorts of add ons. Buy from a reputable UK company not from a overseas company especially if they use high pressure sales, you are looking for a company that will pay out a long time in the future. Before you buy Life Insurance make sure you have enough Pension coverage, employers have to contribute to workplace pensions but there is no reason that you cannot buy a separate personal pension as well.
Any Iife Insurance or Pension will give you a questionnaire, you must fill it in honestly because if you have a claim they will check medical records and any other related commitments you make, eg if you are a Biker, Mountaineer or other risky pursuits your premiums will be higher.
Best of luck reading the small print - do read it.
Re: Life Insurance
Posted: Fri Jan 12, 2018 5:54 pm
Just a very quick reply, I'm already late for something, but I couldn't resist your challenge!
Glad David has given you a detailed reply, though, read his reply carefully!
I googled life insurance and smoking, and this is what came up:
"The model insurers work to is simple: if you have used tobacco in the last 12 months, you're a smoker"
So if you really have been nicotine free for a year or more, you don't have anything to worry about.