Do life insurance companies accept life insurance claims for drug overdose deaths? Maybe yes, but it heavily depends on the circumstances surrounding the death. Accidental death is interpreted differently by every life insurance company and similarly by different states and their legal procedures. Whether the insured died from an overdose of illegal drugs or an accidental overdose of prescribed drugs, it’ll play a huge part in claiming your life insurance policy.
Life insurance and accidental death coverage are not the same. In most cases, life insurance will pay out if a policyholder passes away, although exceptions exist, such as if the death happened within two years of the policy’s execution or if the applicant misrepresented the information on their application. On the other hand, accidental death insurance often only pays out if the death was caused by accident, and none of the exclusions apply. Drug overdose is covered under accidental death plans, but only under specific conditions. Some exclusions from different life insurance companies state that:
- No death benefits will be paid for any loss that occurs due to being intoxicated or as a consequence of using a substance against prescribed orders.
- No death benefits will be paid if an injury or loss occurs directly or indirectly due to a vehicle accident where the blood alcohol levels meet or exceed the intoxication state, regardless of the outcome of any legal proceedings.
However, an unintentional drug death can be taken into consideration if:
- An accident occurred during a medical procedure
- Someone gave the drugs to the policyholder with the intent to harm
- Too much of a drug was taken accidentally
- The wrong drug was given in error
If none of these conditions are met, the drug overdose will be classified as a suicide. This may cause further challenges for the beneficiaries seeking a payout on their life insurance claims.
Formerly, insurance companies denied coverage for individuals who engaged in risky activities. In addition to drug usage, these activities encompassed scuba diving, rock climbing, and skydiving. The criteria of many life insurance providers have been less stringent in recent times. However, insured individuals still need to declare any harmful or risky activities they participated in before purchasing coverage. If the insured does not reveal this information, there is a likelihood that the policy will be invalid and useless if they die as a result of indulging in a dangerous activity, like drug usage.
Was Your Life Insurance Claim Denied Due to Drug Overdose?
If you’re worried about your insurance claim being denied, we can help.
If the insured’s death was caused by a drug overdose or was alcohol-related, and your claim is dismissed, you can make your case claiming that the insured’s death was a genuine accident or that alcohol addiction or overdose was not the main reason for death. Many beneficiaries have been reimbursed when the insured died unexpectedly with drugs or alcohol in their blood.
If you require any legal assistance, get in touch with us immediately to schedule a free case review, and let us assist you in obtaining the death benefit you deserve.