If you sign up for a Life Insurance policy as a non tobacco user and a few years later you choose to start smoking...and don't tell the insurance company, is this fraud?
No, it is not fraud and you will still be covered by your life insurance policy.
At the time of the application for life insurance coverage you were a non-smoker.
That is what they assessed your risk at and that is what the rating will stay at on your life insurance policy.
They will still pay the claim if you die while your life insurance policy is in effect.
If anything, they will try to prove that you smoked at the time you filled out your application for life insurance, and will adjust the premiums accordingly taking the balance out of the death benefit before it's paid out to your beneficiary.
To say it's fraud is like saying "I was healthy when I got my life insurance but 2 years later I got sick and died from cancer. Is that fraud?" In both situations your status changed and it's what was accurate at the time you filled out the life insurance application that counts.
If you have any questions you can contact your life insurance agent or insurance company and request an answer in writing. Also, it's a good idea to read your life insurance policy and review the exclusions, terms and conditions to better understand how your life insurance policy works.
Insurance without any Medical Exam,
Just a Few Health Questions.
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