Illegal Drug Use

[PittAgent]

I had a client ask me what would happen if at some point he used illegal drugs (weed in this case ) and died in a car accident how the insurance companies would handle that. I told him they would most likely adjust the premiums to smoker rate and take the difference from the death benefit or deny the claim entirely for illegal drug use but more likely deny the claim. I plan to call and ask for clarification but thought some of you may know how that would be handled. Does illegal activity stretch beyond the contestability period?

 

[LGilmore]

It is what you do "before" or have intention to do in the future when you sign up. What you do after a policy is issued really can't be held against you.

So the weed in the system at death wouldn't be cause for rejecting the claim unless there is some evidence the person smoked weed prior to the application.

They cannot withhold unless they can prove something is material to the application was hidden from them.

 

[Mattschmidt]

What lgilmore said

And this sounds like a great client to have

 

[OregonDave]

Life insurance typically has a two year incontestability, check regs in your state, Mmmmkay.

 

[Spin]

How does the insurance company alerted to drug use, us the autopsy report submitted to the insurance company before payout?