Do you take drugs in your daily life? Here is how life insurance and drugs play together.
How does substance use affect life insurance?
Your lifestyle can improve your chances of securing a good life insurance policy. If it comprises healthy habits, it will help you secure a more reasonable deal. But if you indulge in activities like substance abuse, it makes things difficult.
Substance abuse poses a significant danger to your life. It can cause sudden death. An insurance company analyzes the potential risks to your life. It sets the amount of premium based on this analysis. If the insurance company considers you a high-risk venture, it may charge a higher premium or deny the coverage.
Suppose you are a marijuana smoker; it will not bar you from getting life insurance. But if you have a history of drug abuse, the insurance companies may refuse to serve you. They may want you to be clean for five years.
How to get life insurance as a drug user?
Drug use may prove a hurdle in getting traditional life insurance. But it does not restrain you from buying other life insurance policies. You can sign up for any policy that does not demand a medical test. These include:
Simplified issue insurance
You can obtain this life insurance policy by answering a small number of health-related questions. It is the best route if you want to skip a medical test. It is also a quick way to secure life insurance. But you get just limited death benefits. And you pay higher premiums.
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Guaranteed issue insurance
It is a type of whole life insurance that requires no medical test. So, it is best for those with a preexisting medical condition. The beneficiaries may not get any death benefit if the policyholder expires within 2-3 years of the agreement. Also, the premiums paid under this policy are high compared to its death benefits.
Group life insurance
Usually, the employer gets such a policy for its employees. It is an affordable insurance policy, but it only offers minimum benefits. Therefore an employee needs to sign up for an additional insurance policy to get sufficient coverage.
Will life insurance pay if drugs are in the system?
Life insurance companies do pay for deaths resulting from a drug overdose. The beneficiaries do get the death benefits despite the illegality of the substance. But the time is crucial here. If the death occurs in the first two years of the policy, a life insurance company may challenge the beneficiaries’ claim. The applicant must survive the contestability period.
The person applying for life insurance also needs to be truthful. If he gets an insurance policy by lying to the company, it will not serve the purpose. The insurance company may deny the beneficiaries’ claim based on the misrepresentation of facts by the applicant.
Insurance companies don’t want to incentivize those who do not value their life. Generally, life insurance companies do not pay any death benefits if the policyholder commits suicide in the first two years of policy enforcement. If a person takes a drug overdose to kill himself, his dependants may not get any death benefit.