A life insurance policy can be a crucial form of financial support for those who suddenly lose a loved one. It may be the only way they have to stay in the same home or pay debts owed by the deceased individual, such as student loans. People’s life insurance policies are one way they protect their loved ones.
Unfortunately, occasionally insurance companies deny claims made by those who have recently lost a family member. Although there is a valid policy, the company may point to the circumstances of the decedent’s death and the specific terms of their coverage to justify the refusal to pay out on the policy. Families who need support the most sometimes find themselves fighting red tape and wondering about the terms of their coverage. For example, some grieving families wonder whether a fatal drug overdose may justify the refusal to pay out on the life insurance coverage that a deceased loved one carried before they died.
Drug overdoses are usually accidental
There are several different ways that insurance companies might try to justify denying coverage based on a drug overdose. The first would be by trying to claim that the overdose was actually a suicide. Policies frequently include terms that specifically prohibit payouts in scenarios where the policyholder takes their own life.
Other times, policies specifically prohibit payouts in scenarios where someone engaged in illegal behavior. Insurance companies may try to point to drug prohibition as a justification for refusing to pay out on a policy even though the addiction may have started through medical treatments or the overdose may have involved prescription medication.
A careful review of policy paperwork and records related to someone’s passing with the assistance of an attorney can help grieving family members better navigate a scenario involving a denied life insurance claim.