Does Life Insurance Cover Suicide?

Coverage for recovering addicts

Life insurance covers a recovering addict who has shown a history of sobriety. Recovering addicts need to be clean and sober for at least two years. Records and details of treatment matter in the evaluation of the premiums for the agreement policy.

A life insurance company does not pay out death benefit for a drug overdose that was intentional.

Why? Insurance providers classify drug use as a risky behavior. But this greatly depends on whether the insured gave the correct information about their drug use history when applying for insurance. 

The insurers investigate if the death of the insured was connected to drug overdose or alcohol abuse.

Overdose Checklist

They basically check the following items in relation to drug-related deaths:

  • Classification of the drug the policyholder overdosed on.
  • If the drug overdose was intentional or by accident.
  • How often the subject abused the drug and the level of damage it did to them.
  • If the insured ever broke any laws as a result of their drug use problem.
  • The number of drugs the policy holder was hooked on.
  • Indicators of dependence and withdrawal. If they reached out for help from rehabilitation facilities.

The underwriters obtain the information above when the insured dies in a mystery surrounding drug abuse. If they find out any details that do not match their records they have the right to contest the insurance claims. And that means they may not pay the death benefit.

But if the policy holder gave accurate and consistent information of their drug use history, and genuinely relapsed to a drug overdose level, then the company will pay.

Relapse is a very common trait among people who are dependent on drugs and alcohol. And those who relapse must not be punished for their mental illness but rather be helped.

Since the policyholder probably signed up for the policy when they were sober and healthy. But they recently started using again to the point of an overdose, the insurance provider may compensate the beneficiaries for the loss of their loved one.

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