The amount of deaths by drug overdose is alarmingly high. Almost a hundred thousand people suffered drug overdose deaths in 2021.

If someone you know and love is addicted to drugs, this might be a worrying statistic for you. If they die, how will you pay for their funeral costs? Does life insurance cover drug overdose-related deaths?

What does life insurance cover? In this article, we’ll answer all of those questions. We’ll also give a brief overview of what situations lead to an insurance coverage exclusion.

If you’re ready to be properly informed on this topic, then read on. 

Does Life Insurance Cover Drug Overdose Deaths?

It depends on the exact circumstances surrounding the manner of death, but in many cases, an insurance company will not cover a drug overdose-induced death. 

If someone you know died due to a drug overdose, you need to be cautious in how you navigate the claim. Filing a claim at the wrong time will lead to the claim being denied. This means you won’t get the money you need to pay for expenses.

Many life insurance companies have something known as a contestability clause. The contestability clause is a period within the first two years of a policy where an insurer can deny or fight claims for a variety of different reasons. After this period, life insurance companies will only deny claims for serious reasons such as fraud.

Reasons to Accept a Drug Overdose Death Claim

Life insurance companies will try to protect from the possibility of paying for a drug overdose-induced death. For example, they may require someone to take a drug test when applying. If the company has reason to suspect an illegal drug overdose, they will deny the claim.

Exceptions can be made to this, however. If the person who died was receiving treatment for their addiction, the company may decide to pay out. In addition, if the company’s policy doesn’t explicitly exclude illegal activities, they will typically pay the claim.

One case where the company will pay the claim is if the cause of death was an accidental drug overdose with prescribed medication. This type of overdose usually occurs in chronically or terminally ill people.

To make sure the death was an accidental overdose, your insurance company may examine the coroner’s report. If the coroner’s report ruled the death as an intentional overdose, however, that is considered a suicide. While life insurance companies do pay for suicides, it makes the claim more complicated.

Reach Out to Us

Now that we’ve answered “Does life insurance cover drug overdose deaths” and other questions, we hope that we’ve covered everything you’re worried about. Maybe you’re ready to consider getting life insurance of your own.

Whether you have more questions or you’re interested in our services, the next step is simple: reach out to us. Our company, RBP Insurance, has been around since 1960. We pride ourselves in being an experienced firm that can assist you with any questions or concerns.

Give us a chance to make the process of getting life insurance easier. You won’t regret it!