Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Today's question is, Does life insurance cover drug overdose? Remember, during the contestability of a contract during the first two years, if somebody actually overdosed on drugs and that can be quantified as suicide, most carriers will not pay the death claim.
If this is an accidental drug overdose, whether by prescription or whether by street drugs, then if it's just a normal death claim, it should pay the claim. But keep in mind, this is going to be highly investigated during the first two years. So if death occurs and drug overdose is involved, you're going to go through an investigation process to determine under their due diligence process whether this was suicide or not. So just keep in mind when you're looking at a question like this you're saying, When did it occur and under what circumstances did it occur?
Life insurance will cover death by drug overdose. During the first two years of the policy, the life insurance company will not pay the death benefit if suicide occurred, or if death was due to something that was omitted or lied about on the application. Most life insurance applications do ask if you have had drug treatment, or crime related to drug usage, at least in the past few years. But if you were honest on the application, and after the first two years, the policy would most likely pay for drug overdose in any circumstance.
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If this is an accidental drug overdose, whether by prescription or whether by street drugs, then if it's just a normal death claim, it should pay the claim. But keep in mind, this is going to be highly investigated during the first two years. So if death occurs and drug overdose is involved, you're going to go through an investigation process to determine under their due diligence process whether this was suicide or not. So just keep in mind when you're looking at a question like this you're saying, When did it occur and under what circumstances did it occur?