Supplemental Life Insurance Procedure?

[Guest BettyG]

:confused:

Hello, I have a question regarding our Supplemental Life Insurance Benefit... It may be a procedureal issue - I'm not sure.

An employee has $200,000 of voluntary life insurance as a non-smoker. They have recently started smoking and since our rates are based on smoker status, we need to change her designation. However, I want to pose the question...

When should this change take place? Does their status change the following month upon receipt of new information or next policy anniversary or next payperiod following receipt of information.

Has anyone handled this before and if so, what was your procedure?

Any feedback is greatly appreciated.

Thanks, BettyG

[GBurns]

What would you do if instead the employee who was healthy at the time they signed up for the policy, but now has developed a condition that would make them uninsureable?

Is this Annual Renewable Term or not?

If it is not : What is the position taken by the insurer? What are their requirements after policy issue and before the end of the contestability period?

If it is ART then there is most likely a question on the application the answer to which would lead to a determination of eligibility by the insurer.

The question of an employee's eligibility should not be a function of the employer. Why does it matter to you if the insurer decided to accept a nominal or minimal number of smokers as part of their underwriting? They probaby have a few smokers factored in anyway.