The number of people who died from drug overdoses in the United States hit an all-time high of about 72,000 in 2019.
Among the drugs that caused the most deaths were opioids (prescription medicines meant for pain relief), which accounted for more than two-thirds of all deaths.
The COVID-19 pandemic, which took place in 2020, has had a devastating impact on drug-related deaths.
Deaths increased by an estimated 13 percent across the country, with certain regions experiencing up to 30 percent increases. The pandemic’s social isolation aggravated mental health struggles, which frequently co-occur with addiction.
Sadly, many families left behind by people who overdosed on drugs were left with nearly nothing to provide for themselves. So a question many of us are wondering is if life insurance provides coverage for families affected by drug overdose.
In this article we look at the question “does life insurance cover a drug overdose?” so you know what to expect if you have to deal with this heartbreaking situation.
Does Life Insurance Cover A Drug Overdose?
The short answer is yes, it is possible to obtain a payout from a life insurance policy if you are the beneficiary and the policyholder passes due to a drug overdose. However, while it is possible, it is not guaranteed that the beneficiary will get the death benefit in this scenario.
Life insurance policies frequently cover drug overdose deaths. However, the extent of coverage will vary depending on the circumstances of the overdose and the policy’s restrictions.
It makes no difference what the substance is or whether it’s illegal to have in one’s possession. Insurance companies would pay out the death benefit on a life insurance policy even if the insured died due to an overdose of drugs or alcohol.
When determining whether or not a life insurance company would pay a death benefit to a person who has overdosed on drugs, various factors must be considered. These factors may include:
- The type of medication on which the insured overdosed
- Whether the insured was truthful when applying for life insurance about his or her drug use
- If the overdose was intentional or accidental
- Whether or not the insured dies during or after the policy’s first two years
Previously, insurance providers would deny coverage to individuals who engaged in dangerous behaviors. These practices included scuba diving, mountain climbing, skydiving, and substance abuse. However, several life insurance firms have relaxed their exclusions in recent years.
Insured individuals must nonetheless declare to their provider any harmful or risky behaviors they engaged in before acquiring coverage. For instance, if you falsely indicated that you had never attended inpatient drug treatment on your application, but that wasn’t the truth, then the claim may be successfully denied by a life insurance company.
When Will Insurance Approve An Overdose-Related Claim?
If you die due to accidentally taking too much prescription medication, your policy will almost certainly cover your beneficiaries’ claim. Coroners are likely to report the following common causes of accidental death as unintentional drug overdose deaths:
- Ingestion of the medication by accident
- Inadvertent intake of an excessive amount of the medication
- Someone else administered the medication in error.
- A medical expert mistakenly provided an excessive dose of the medication.
- Someone harmed the individual by coercing or duping them into ingesting the substance.
If the drug overdose is determined to have been intentional, the life insurance company may deny the claim and withhold the death payment.
The contestability clause is a critical component of an individual insurance contract. This period typically encompasses the first two years of a policy’s existence. An insurer has the right to contest or refuse claims for a variety of reasons.
If you die of a drug overdose within this time frame, the insurer is more likely to refuse your claim than after the contestability period expires. At that time, insurers could contest claims only in extreme circumstances, such as a fake application.
In conclusion, life insurance provides coverage for deaths caused by drug overdose, but only in certain circumstances.
If you or a loved one are struggling with addiction, you are not alone. If you need someone to talk to or helpful resources, call the Substance Abuse and Mental Health Services Administration’s (SAMHSA) hotline 1-800-662-HELP (4357).
