Life Insurance FAQs

Yes, life insurance claims can be denied if alcohol use contributed to the insured's death in some cases. Insurance companies must determine that the death was not a result of excessive alcohol consumption. If there is evidence that the death was caused by intoxication, the claim may be denied. The insurer will take into account any medical records, autopsy reports, and other factors in making this determination. If the insurer finds evidence that alcohol contributed to the cause of death, the claim may be denied. The insurance company may also require a toxicology report to determine if alcohol was involved in the death.

Unfortunately, the answer is yes. Most life insurance companies have clauses in their policies that stipulate that claims will be denied if the insured person has died of an overdose or as a result of drug use. The life insurance company may also require a drug test to prove the cause of death. Depending on the policy, a death caused by drug use may even result in the life insurance company refusing to pay out the policy altogether.

You can fight a denied life insurance claim by first reviewing the policy and making sure all requirements were met, such as providing the necessary paperwork. If you believe the denial is unjustified, contact the insurance company and explain why. You may need to submit additional documentation—such as payment records, medical records, and an autopsy report—contact your state’s insurance commissioner for help, or even take legal action. Regardless of the path you choose, it’s important to thoroughly document any actions you take in the event of a dispute.

A life insurance company may deny a claim if they believe the original policyholder failed to disclose risk factors pertaining to their health or lifestyle. They may also deny a claim if monthly premiums were not paid or if the death occurred within the contestability period (usually the first two years after a policy is created). 

In some cases, you can appeal a denial from your life insurance company. If the denial was made in bad faith, you can challenge the decision internally within the company as well as by taking legal action if necessary. A life insurance dispute lawyer can help you appeal the decision and file a lawsuit if an insurance company refuses to pay.