Change smoker status: conversions and guaranteed insurability options

Requirements to update smoker status on life insurance

This document explains what is needed to change the smoking classification when clients apply for a new Life Insurance policy because of a contractual right (conversion, guaranteed insurability option). The electronic insurance application will collect the appropriate evidence based on the transaction type.

Evidence you need when changing clients' smoker status while exercising a contractual change:

  • If applying for smoker rates and there is no increase in insurance, no evidence is required.*
  • If applying for non-smoker rates and there is no increase in insurance, only the smoking habits evidence question is required.*  If using a paper application, answer the smoking question in the Personal information section.
  • If there is an increase in insurance, we require the necessary age and amount requirements for the difference in the amount of insurance.  Complete the Personal information, Family history and Non-medical evidence of insurability sections of the application.
  • Refer to the age and amount evidence chart to determine what medical evidence is required, if any. If the Client is now a smoker, the smoker rates will apply to the entire amount of insurance. If we determine that clients are now a special class risk, the rating will apply to the entire death benefit amount. It may be to a Client’s advantage to purchase an additional separate policy for the increase.

  • If there is no increase in insurance coverage, the new policy can be issued with non-smoker rates regardless of the current smoking habits. No evidence is required.*
  • If there is an increase in insurance coverage we require the necessary age and amount requirements for the difference in the amount of insurance. Complete the Personal information, Family history and Non-medical evidence of insurability sections of the application.
  • Refer to the age and amount evidence chart to determine what medical evidence is required, if any. If the Client is now a smoker, the smoker rates will apply to the entire amount of insurance. If we determine that clients are now a special class risk, the rating will apply to the entire death benefit amount. It may be to a Client’s advantage to purchase an additional separate policy for the increase.

  • If Clients remain smokers and there is no increase in insurance, no evidence is required.*
  • If Clients apply for non-smoker rates and there is no increase in insurance, we require the necessary evidence for a change to non-smoker.* A urinalysis must be submitted if the insurance amount of the policy is $100,000 or greater. If using a paper application (form 001), do not complete the evidence sections. Instead, fully complete and submit a Declaration of smoking status (for changes on existing policies only) form (E18) with the paper application and the urinalysis if the amount of the policy is $100,000 or greater

  • If the original policy is a juvenile policy and the life insured’s age falls within the window period during which a smoker to non-smoker change is allowed, only the smoking habits question is required.* If using a paper application, answer the smoking question in the Personal information section.
  • If the contractual window period has expired, refer to "Original policy was issued with ‘smoker’ rates above".
  • If there is an increase in insurance we require the necessary age and amount requirements for the difference in the amount of insurance. Complete the Personal information, Family history and Non-medical evidence of insurability sections of the application.

*Note:  If the original policy included disability waiver benefit (DWB), total disability benefit (TDB) or waiver of premium (WP) on the primary insured, the answer to the following question is required:  "Are you currently claiming on your disability benefit". This question can be found in section 11 of the paper application, form 001.

Share

Want to share this information on social media? Select the appropriate link below.