Substance Abuse Can Affect Life Insurance Premiums

6/19/2010

Recent years have seen a sharp increase in the number of emergency room visits involving the misuse of prescription drugs. While this problem has obvious public health ramifications, some people may not realize that one's life insurance premiums and even an eventual payout can also be significantly affected.

This is because life insurance companies will often ask about a customer's substance abuse history and can check into such matters themselves with help from medical records. Traditionally, the use of illegal drugs may have been the primary focus in this area.

However, a recent report from the Centers for Disease Control and Prevention finds an alarming rise in the number of people who have had to seek emergency treatment for the use of oxycodone, hydrocodone and methadone.

Combined, ER visits involving these drugs rose 111 percent between 2004 and 2008, states the report, with oxycodone-related incidents skyrocketing by a 152 percent margin.

With more than 200,000 emergency room visits each year now traceable to the misuse of prescription drugs, life insurance companies will be among those keeping a close eye on this problem and on ways to reduce it.

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