Several years ago, my client bought a policy on non-smoker rates. He gave up smoking for many years, but has just started again. What will happen with his non-smoker discount?
Check his terms. The majority of companies offer non-smoker dis-counts to applicants who have not used tobacco for 12 months, although some might offer a discount to lifelong non-smokers. There is a time delay because many people who give up, start smoking again within 12 months.
The non-smoker discount norm-ally applies from the start of the policy and most companies will not require the client to complete any further declarations to say they still do not smoke.
Some terms require the client to remain a non-smoker. If this is not stated and your client starts smoking, it would be sensible for them to advise the insurer of the change in status and request confirmation that this will not affect the cover.
These days, it is more likely a client will contact you to say they have given up smoking and ask if they can have a non-smoker discount on a smoker rates policy. Some companies' policy terms may allow for this change, subject to satisfactory evidence. If there is nothing in the terms about this, then a company will choose to:
• Not allow a change in the smoker status. This may be due to IT system restraints, or the company's standard position, for example.
• Allow the change, subject to one or two declarations. The company may ask the client to sign one declaration regarding the change in smoker status and another on continued good health to ensure it was not a major change in health that prompted quitting smoking.
Where the company does allow a change in smoker status, the client may have the choice of a revised premium or sum assured.
Shelley Robertson
