Underwriting Past Cocaine Use
Key Considerations
- Insurer selection is key to achieving favorable outcomes
- Favorable underwriting variables:
-
- No other drug use
- No excessive alcohol use / DUIs
- No criminal record
- Not diagnosed with anxiety or depression
- Stable employment, family life
We get many inquiries from Advisors whose life insurance applicants tested positive for cocaine on insurance company labs and were declined. In most cases, the applicant states this was the “only time” they used cocaine and they won’t ever use it again. Clients who are willing to admit to this “one time” use on a subsequent application, assuming all other underwriting criteria are favorable, may qualify for life insurance after one year. In the meantime, accidental death, failure to survive, or guaranteed issue policies can provide limited coverage.
If you have an applicant who just tested positive for cocaine, or if you have a more complex case with a history of recurrent drug use, we can provide you with carrier recommendations and preliminary pricing based on your client’s use history. Connect with us to strategize. You can also submit case details via our Second Underwriting Opinion form and we’ll respond with our industry’s top option(s). The table below summarizes options for life insurance applicants with a history of cocaine use.
Admitted Cocaine Use
Best Class
Notes
Recent use
N/A
- Accidental Death Benefit (for personal coverage, with exclusion rider)
- Failure to Survive (for business coverage, with exclusion rider)
- Guaranteed Issue
Years 1 – 2
Table 6
One insurer
Years 2 – 3
Table 6
Two insurers
Years 4 – 5
Moderate Table / FE $7.50 x 2
Several insurers
Years 6 – 10
Standard
Most insurers
After 10 years
Preferred
Most insurers
Do you have a rated or declined case? Let’s put our heads together to explore our industry’s top options. Connect with us today.
