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POSTED BY ON June 8, 2012 7:59 pm COMMENTS (2)
I applied for 60L premium online at aegon-religare for term insurance. I paid 10195/-, but they reverted back with a counter offer asking me to pay 13974/- (citing my smoking habit)… problem is there is no option in the form to tell them that i had quit.. also i was an infrequent smoker and sure that there won’t be any trace of nicotine in my blood samples.. but I had to tick ‘yes’ in the smoking column, just to be honest.
So now, my question is whether to accept this counter offer or not. Is this too much of a premium? pl let me know.
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Balu
You need to understand that in life insurance “once a smoker , always a smoker” kind of assumption is there, if you have smoken once, there are high chances that you will again do it , hence this information that “you have done it in past” makes you more riskier than someone who has never done it .
I think you should take up the offer and go ahead.
Manish
Dear Balu, In my personal opinion, it’s advisable to go for that higher prem. as the insurer is ready to cover your life & is entering in the contract even after knowing the added risk. How this ‘ll help you? In future if your death occurs due to a situation that can be linked with your past smoking habit, your family is secure as you had told the truth & insurer had accepted the same.
There is one more ugly side if you deny the offer. You ‘ll go to another insurer. There you ‘ll face a question in the application form – had your prem. was loaded ever while applying for a policy or the policy was denied to you? – What ‘ll you write for this question?
Thanks
Ashal