How Does A Life Insurance Company Know If You Smoke? 
There are several ways that a life insurance company can know or learn that you smoke -LRB- what you smoke was not specified but we 'll go for tobacco on this one -RRB- . 1 -RRB- Self Reporting - they ask you on your application if you are a tobacco user and , depending upon the value of the policy being applied for , may ask for fairly detailed information on your type and frequency of tobacco usage . So , to honestly complete the initial application the applicant themselves should be the person informing the insurance carrier about their tobacco use status . 2 -RRB- Physical Exam - as a condition of your application you may be required to get a basic physical examination where things like height & weight can be verified and where , quite often , blood and/or urine samples are also taken to screen for health issues and to detect drugs such as Nicotine in the applicant 's system . 3 -RRB- Electronic Medical Records - most life insurance carriers will check your application 's answers against information about you in the Medical Information Bureau . An indicated history of tobacco use when none is reported on the person 's application would be an underwriting red flag . Also , information about whether you have been issued life insurance as a smoker , declined or rated as a smoker on a life insurance application can also turn up . 4 -RRB- Leg Work - few of us will have this problem , but if you are applying for a really large amount of life insurance the insurance carriers may actually conduct investigations into an applicant 's background and medical history . These may include interviews with friends and family . So , if they figure out you are really a Mafia boss rather than the president of the local trash company , your application for $ 50 million in coverage may get turned down . To take out a life insurance policy as a non-smoker when you really are a smoker would be an act of fraud -LRB- a misrepresentation on the applicant 's part -RRB- . And even if you were to get issued at a non-smoker 's rates that does n't mean you are home free . Life insurance policies standardly have a two year contestability provision in them where the insurance company can terminate or adjust the policy if it can prove that you made any false statements on your application . But , if your misrepresentation about your tobacco use is determined to meet the legal requirements of fraud -LRB- pretty good chance they will -RRB- then the contestability period is indefinite . 