There are a number of factors that are taken into consideration to determine if a life insurance company will pay out for someone who has overdosed on drugs. These factors include:

- The type of drug that the insured overdosed on

- Whether or not the insured was honest about their drug use when applying for life insurance

- Whether the drug overdose was intentional or on accident

It used to be that insurance providers excluded coverage for people who engaged in risky behaviors.  It is necessary for insured individuals to disclose with the provider any dangerous or risky behaviors that they engaged prior to receiving coverage. If the insured does not disclose this information, there is a chance that the policy will be void if the individual perishes as a result of engaging in a risky activity, such as drug use.

Drug use is considered risky behavior, and an insurance provider may or may not issue a death benefit for a drug overdose.

If the policyholder isn’t forthright with information regarding risky behavior, the insurance company has the right to deny the claim. If a claim is filed on the insured’s life insurance, there is what is known as an incontestability period. During this period, the insurance provider can dispute a claim, stating that the policyholder provided them with incorrect information.

If the drug overdose was deemed intentional, a life insurance provider can deny the claim and refuse to payout the death benefit. This is especially true if the life insurance policy was just taken out and the insured died as a result of a drug overdose shortly after the policy was issued.

If, however, the drug overdose was unintentional, there is a chance that the insurance company will cover the claim and pay out the death benefit; however, this type of situation is still tricky. Why? – Because drug use is considered risky behavior. If the insured was not honest with the insurance provider when applying for life insurance coverage and had a long history of drug use, coverage may not be covered. But, that’s not always the case. For example, if the person was not using drugs at the time the policy was issued and recently started using them, or only tried them one time and overdosed, the insurance company may cover the claim and issue a death benefit to the beneficiary.

In short, drug overdoses require lengthy investigations before an insurance agency will agree to issue a payout to the named beneficiary. Based on what the insurance provider finds during the investigation, they may cover the claim, or they may deny it.

Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance. 




Posted 3:00 PM

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