A recent article in the Wall Street Journal (Renegotiate Life-Insurance Costs, April 21, 2013) pointed out the life insurance cost savings that can occur by “improving your health”. The article cited substantial weight loss or a change in jobs from high risk to much less risk as two areas where costs might be improved. An obvious health change would be a grantor who has quit smoking. The article states that “a 45-year-old female smoker who quit and is otherwise healthy could save about 60%” on premium costs, not an insignificant sum. I am not sure that savings would be this dramatic in all cases, but clearly you can see the benefit in staying in touch with clients.
When reviewing policies (which should be done periodically) check with the insured and see if anything has changed. If policy issued as smoker, do they still smoke? If they have a rated policy, what was the reason that it was rated? See if that is an issue that has gone away.
This is just another case where proactive trust and policy management will pay off for your clients and mitigate your liability.