Reply #104: Yes. either he paid for insurance or he didn't [View All]

[Doctor_J]

I know that in Illinois, the life insurance works something like this:

Suppose you lie on your application and say you don't smoke when you actually do. The insurance comanpy then sets your rates at say, $250 instead of $750. When you finally succumb, if they found out that you smoked, they can't just not pay at all, though. What they can do to is to pro-rate the premiums to a smoker's rate. So whatever benefit $250 would have bought at the smoker's rate, is what they pay out.

It sounds like your friend should be entitled to some pro-rata benefits like what I just described, ot a full refund of the money he did put in if his "insurer" doesn't want to pay at all.