Burial Insurance with Substance Abuse

Getting approved for burial insurance with substance abuse can be challenging, especially if you don’t know where to look. The problem lies with most insurance providers wanting to see a successful history of sobriety before approving coverage to a drug user.

Here’s the good news…

You can always qualify for life insurance even if you have a history of substance abuse. No matter when you have been sober, there are some affordable insurance options for you.

Even if your substance abuse is more recent, you can qualify for a burial insurance plan that won’t require you to take a medical exam or answer any health questions.

If you have completed treatment for substance abuse, you will have the best chance of getting approved for the best plan with the lowest rates. This is particularly true if you successfully managed to stay off drugs for two years or longer.

Most people with a history of substance abuse will be eligible for final expense insurance with no medical exam or health questions.

We even know one insurance company that never asks about substance abuse in their health questionnaire. We can help you secure first-day coverage with them.

We wrote this article for people with a history of substance abuse looking to obtain burial insurance. We will discuss what insurance options are open for you and how to get the best plan.


THE EFFECT OF SUBSTANCE ABUSE TO LIFE INSURANCE ELIGIBILITY

Substance abuse refers to excessive dependency on any harmful substances that can alter moods or feelings. When you apply for life insurance, the insurance company will be interested in how long you have been sober.

Substance abuse can negatively alter the course of the user’s life and cause it to end prematurely. For this reason, life insurance companies want to know about your substance abuse history.

Commonly abused illegal drugs:

  • Cocaine
  • Crack cocaine
  • Ecstasy
  • Heroin
  • Marijuana
  • Methadone
  • Methamphetamine
  • Methamphetamines
  • Opium

Commonly abused prescription drugs:

  • Amphetamines
  • Barbiturates
  • Benzodiazepines
  • Codeine
  • Dextromethorphan
  • Fentanyl and analogs
  • Methadone
  • Methylphenidate
  • Morphine
  • Opioid pain medications
  • Sleep medications

People who abuse any of these drugs are considered higher risk and prone to some other health issues in the future.

Mortality risks associated with substance abuse include:

  • Deaths from natural causes such as heart attack or stroke
  • Accidental deaths from vehicular accidents, trips, and falls
  • Accidental deaths from a drug overdose
  • Deaths from infection from injectable such as HIV or hepatitis
  • Violent deaths from suicide or homicide

Other risks associated with illegal drug use:

  • Multiple substance abuse especially with street drugs
  • Substance abuse can cause psychiatric impairments
  • Substance abuse can cause occupational, marital, and familial problems.
  • Substance abuse can cause problems with the legal system, such as driving under the influence of drugs or other arrest records.

Anytime you pose a higher risk to the insurance companies, your application can be declined, or you will need to pay more and have a waiting period.

People with a history of substance abuse need to maintain sobriety for at least 24 months to qualify for the best plan with the lowest rate.


WHAT IF I’M CURRENTLY USING DRUGS?

If you are currently taking an illegal substance or abusing prescription drugs, it will be difficult for you to secure a level death benefit plan with first-day coverage. One of the most critical factors that the insurance company will look is the type of drugs you are currently using.

If you’re currently abusing drugs, do not lie on your life insurance application, it is considered fraud to lie about your substance abuse. If you have a drug-related death during the contestability period, there is a good chance that the company will investigate your drug history.

If they found out that you lied on your application, the company will not pay out your death benefit to your beneficiary.

Admitting substance abuse may cause your premiums to go up or result in a waiting period, but falsely representing your substance abuse can cause you serious problems in the future.

The best thing you can do if you are currently using illegal drugs is to apply for burial insurance with substance abuse that has no health questions.

Funeral Funds is skilled in finding the right insurance plan for people with a history of substance abuse. We work with insurance providers with lenient underwriting for drug addicts.

We even know one company that doesn’t ask about substance abuse in their health questions and will offer first-day coverage to drug addicts.


WHAT IF I ALREADY QUIT SUBSTANCE ABUSE?

If you used illegal substances in the past and quit, your life insurance eligibility will depend on some factors:

  • The insurance companies must know the length of time you did drugs.
  • The time that passed since you quit. Most life insurance providers require at least two years from the time you stop, and some companies require an even longer time before they approve your application.
  • The severity of your substance abuse. Do you need treatment or rehab to quit?
  • Have you ever had a relapse since you quit?
  • Have you been hospitalized due to substance abuse?
  • Do you have any health complications caused by substance abuse such as heart disease, stroke, or HIV?
  • Are you currently living a stable life?

These factors will influence your burial insurance application approval. We will help you with guaranteed issue life insurance if you can’t qualify for first-day coverage.


UNDERWRITING BURIAL INSURANCE WITH SUBSTANCE ABUSE

Underwriting is the process utilized by life insurance providers to determine your insurability and how much they will charge you for coverage. It is the company’s fact-finding process, so do not lie on the application.

There are five ways life insurance companies will learn about your substance abuse during the underwriting process:

#1 HEALTH QUESTIONS

Every life insurance company with underwriting has health questions that ask about current substance abuse or in the past.

Some insurance companies may ask about substance abuse this way:

  • “Other than your prescription drugs, have you ever used narcotics, marijuana, stimulants, hallucinogens, or sedatives?”

If you answer “yes,” give the type of drugs, amount, frequency of use, and how long you have been taking these drugs? Also, indicate when you last used them.

When you’re applying for coverage, don’t worry about your substance abuse history to be used against you by law enforcement agencies. Your rights are fully protected under HIPPA Laws (Health Insurance Portability and Accountability Act 1996).

HIPPA guarantees the “privacy of individually identifiable health information.” All the information you disclosed on your application is strictly private and confidential.

#2 PRESCRIPTION HISTORY CHECK

Insurance providers will electronically perform a prescription database check. This will provide information about all prescription medications you are taking and how many times those drugs have been filled over the years.

They will see what medications you are taking and identify any “red flags” that could indicate if you are abusing your medications.

#3 MEDICAL INFORMATION BUREAU (MIB) REPORTS

MIB reports are shared among life insurance companies. It provides previous life insurance application information and results to other insurance providers to review.

If you applied for life insurance coverage in the last six months and you were denied due to drug addiction, this information would be available to any insurance company if you decide to apply for insurance in the future.

#4 DEPARTMENT OF MOTOR VEHICLE REPORT

Life insurance companies also check DMV records. These records may not prove substance abuse, but having a DUI or driving under the influence of drugs or alcohol or DWI – driving while intoxicated will be a red flag to life insurance companies.

#4 CRIMINAL BACKGROUND CHECK

Insurance companies will also perform a criminal background check as part of the underwriting process. Substance abuse will be determined if there are arrest history of possession of illegal drugs. This is a potential red flag in your life insurance application.


POLICY OPTIONS AVAILABLE IF YOU HAVE A HISTORY OF SUBSTANCE ABUSE

LEVEL DEATH BENEFIT

If you have a history of substance abuse and you have maintained sobriety for two years or longer, you can easily qualify for level death benefit plan with first-day coverage and no waiting period.

If you are currently using drugs, but you are generally healthy, we can help you secure level death benefit with one company we work with that doesn’t ask about substance abuse in their health questionnaire.

For this company, substance abuse is a non-issue. You can be eligible for first-day coverage regardless of your substance abuse history.

GRADED DEATH BENEFIT

Most life insurance companies’ offer a graded death benefit plan to those who have been sober for a year.

Graded death benefit plan provides partial first-day coverage for the first two years before the policy is in force. It is the next best insurance option if you cannot qualify for a level death benefit plan because of your substance abuse history.

A graded death benefit plan works this way:

  • If you purchased a $20,000 death benefit amount and you die within the first year, your beneficiaries will receive 30 to 40% of the death benefit payout.
  • If you pass away during the second year, the insurance company will pay 70 to 80% of the death benefit.
  • On the third year and beyond, your beneficiary will receive 100% of the death benefit.

GUARANTEED ISSUE BURIAL INSURANCE

If you have a major medical issue such as organ damage as a result of substance abuse, you may not be eligible for a level death benefit or graded death benefit plan.

If you had been hospitalized multiple times or put in rehab because of your substance abuse, your only option for insurance coverage is a guaranteed issue burial insurance.

This plan cost a bit more than the level death benefit, and you will only get a maximum of $25,000 in coverage. It also has a two-year waiting period for natural causes of death. Accidental death has no waiting period.

If you die within the first two years, your beneficiary will receive all the premiums you paid plus 10%. Your beneficiaries will receive 100% death benefit when you pass away after the two-year waiting period.


BURIAL INSURANCE WITH SUBSTANCE ABUSE

TOBACCO USE

Tobacco use includes cigarettes, pipes, chewing tobacco, and e-cigarettes. Because of the various diseases associated with tobacco use, insurance companies consider tobacco use to be a higher risk activity.

Tobacco users are required to pay two to five times more for life insurance from all insurance companies. It is called tobacco rating.

Those who have been tobacco-free for at least 12 months or longer can qualify for the non-tobacco rate.

ALCOHOL ABUSE

Alcohol abuse also called alcohol dependence, alcohol addiction, alcohol misuse, and alcoholism is a disease that is characterized by unhealthy drinking behaviors. It also includes binge drinking.

Alcohol abuse can cause health and lifestyle issues that increase the risk of premature death. Alcoholics run risks such as depression, liver failure, and risky behavior like drinking and driving.

Best Option: Level death benefit

If your alcohol abuse diagnosis, a recommendation for treatment or treatment is beyond 24 months or longer, many life insurance companies will offer you first-day coverage.

Other Option: Guaranteed issue burial insurance

If your alcohol abuse is within the past year or you still use alcohol, you will not qualify for first day coverage. A guaranteed issue life insurance plan is your best option for coverage.

MARIJUANA USE

Life insurance is available for marijuana users with or without a prescription. If you’re a recreational marijuana user or you use marijuana medicinally, there are plans available where you don’t have to disclose your usage.

Best Option: Level death benefit

If you are a marijuana user and you use it recreationally, meaning once or twice a year, you may be able to qualify for level death benefit at a non-tobacco rate.

Ironically, if you use marijuana with a prescription to treat a medical condition such as chronic pain, cancer, and a variety of other diseases, you will be charge tobacco rates.

Other Option: Guaranteed issue burial insurance

If you’ve been hospitalized or put in rehab due to marijuana use, your only option for coverage is guaranteed issue whole life insurance.

MEDICAL MARIJUANA USE

Medical prescriptions for marijuana use are allowed in some states. Since it is legal, there are no legal issues regarding the law enforcement agency and qualifying for life insurance.

Best Option: Level death benefit

Some insurance companies offer a level death benefit to medical marijuana user if the condition being treated is mild to moderate.

Other Option: Guaranteed issue whole life insurance

If you’re using medical marijuana to treat a severe medical condition, you will not qualify for level death benefit plan, but you can apply and receive approval for a guaranteed issue burial insurance.

CBD OIL USER

If you are a CBD oil user, you can qualify for burial insurance. With a rising number of U.S states legalizing marijuana for medical use, the insurance industry has become more lenient with CBD oil users.

Best Option: Level death benefit

CBD oil users may be approved for first-day coverage depending on the type of medical condition the CBD oil is treating. If you’re using CBD oil to treat a minor health issue and you are generally healthy, you can be eligible for a level death benefit plan.

Other Option: Guaranteed issue burial insurance

If you use CBD oil to treat a severe medical condition, you will not qualify for a level death benefit plan, but there is another option. You can receive approval for a guaranteed issue burial insurance.

ILLEGAL DRUG USE

In the past, it’s challenging to qualify for life insurance if you currently use illegal drugs like opium, methamphetamine, cocaine, and heroin. If you currently abuse illicit drugs or prescription drugs, most companies will require you to have a minimum of two to five years sobriety, without any relapse or hospitalization before offering the best plan.

Best Option: Level death benefit

If you have maintained sobriety for two years or longer, some insurance companies will offer you first-day coverage.

If you are healthy and you currently use illegal drugs, we can help you secure level death benefit plan with one insurance company we work with that doesn’t ask about drug abuse in their health questionnaire.

Other Option: Guaranteed issue burial insurance

If you have been hospitalized or put in rehab because of substance abuse or you have major organ damage, your only option for coverage is a guaranteed issue burial insurance.


INFORMATION WE NEED IF YOU HAVE A HISTORY OF SUBSTANCE ABUSE

When applying for final expense insurance with a history of substance abuse, we will ask you a few questions about your drug use. We want to know more information if you’ve tried illegal drugs before.

To find the best plan and pricing, we will ask you a few questions:

  1. When did you start using drugs?
  2. How long have you been using illegal drugs?
  3. What type of drugs have you used?
  4. Have you ever been hospitalized due to illegal drugs?
  5. How long have you been living a drug-free life?
  6. Have you sought treatment or professional help to ensure sobriety?
  7. Have you gone to rehab, how long have you been there?
  8. Did you have a relapse? If so, how many times?
  9. Do you have any medical issues caused by drugs (heart disease, stroke or HIV)?
  10. Are you currently employed?
  11. Do you have a permanent address?
  12. Have you been declined for life insurance due to substance abuse?

It is essential to answer these questions honestly. Your answers will help us determine which life insurance company will be the best fit for your needs and will offer you the lowest price.


HOW TO BE APPROVED IF YOU HAVE A HISTORY OF SUBSTANCE ABUSE

First and foremost, be honest about your substance abuse history on your application. If you’ve been rejected for coverage in the past, say so.

If you had been denied several years ago, but you’ve been clean and sober since then, you may be able to qualify for a level death benefit with first-day coverage.

Most burial insurance providers require applicants to maintain sobriety for a minimum of two years. If you’ve been sober for two years or longer, do not hesitate to apply for a new life insurance policy because you now have a better chance of getting approved.

Don’t ever think that you will not be eligible for burial insurance with substance abuse!

Even if your substance abuse is more recent, say within this year, you can apply for an insurance policy, but may need to pay a higher premium and have a waiting period.

If you’re currently using drugs, you’ll definitely need to work with an independent agency like Funeral Funds that can shop your case to multiple life insurance companies to get the best deal.


HOW CAN FUNERAL FUNDS HELP ME?

Trying to find a policy if you have a history of substance abuse needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.

If you have a history of substance abuse, let us help you; we will work with you side by side to find a plan that fits your needs.

We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.

We will shop your case to different insurance carriers and get you the best price.

We work with many A+ rated insurance carriers that specialized in covering high-risk clients like you.  We will search all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.

We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for substance abuse funeral insurance, or substance abuse burial insurance, or substance abuse life insurance.

Fill out our quote form on this page or call us at 888) 862-9456 and we can give you an accurate quote.