Can Life Insurance Claim Be Denied For Drug Use?

Life insurance policies are designed to help provide financial support to beneficiaries in the event of the policyholder’s death. However, life insurance claims can be denied for various reasons, one of which is drug use. Insurance providers may deny a claim if drug use is found to be the cause of death or injury, or if the policyholder was using excluded or illegal drugs at the time of the incident.

Reasons for Claim Denial

Insurance providers may deny claims for drug use-related reasons such as accidental overdose, overdose on prescription drugs, or death caused while on excluded or illegal drugs. Accidental overdose is determined by providers based on certain criteria, such as if the drug was taken accidentally or too much of the drug was taken accidentally. If the overdose is classified as suicide, it is typically excluded from insurance coverage.

Prescription drugs are also a gray area, where state law and medical professionals may not always agree on what qualifies as an accidental overdose. Insurance providers usually pay out in cases where the overdose is on a prescription drug, unless they find evidence to support intent to overdose or an attempted suicide.

Excluded or illegal drugs such as marijuana, LSD, or cocaine are another reason for claim denial. Insurance providers typically have a clause outlining the excluded drugs, which can void the contract if found in the policyholder’s system at the time of death or injury.

Appealing a Denied Claim

If a claim is denied due to drug use, it is important to review the policy details and seek help from a life insurance lawyer. They can review the case details, determine the true cause of death, and compare it with the policy terms. If the denied claim was made in bad faith, they can help file an appeal to overturn the decision.

Drug use-related claim denials can cause additional stress and confusion for families dealing with a loss. It is important to understand the policy terms and seek legal help when needed to ensure that beneficiaries receive the financial support they are entitled to.

Reasons for Claim Denial	Examples
Accidental overdose	Too much of the drug was taken accidentally
Overdose on prescription drugs	Insurance provider finds evidence of intent to overdose or attempted suicide
Death caused while on excluded or illegal drugs	Presence of excluded or illegal drugs voids the contract, regardless of fault for the incident