The Cocaine Mumma

Hi Scott

I’m a happily married mother in my mid-thirties, with two kids under four. We’ve been Barefooting for seven years, and I went to a financial advisor to sort all my insurances out so my family is financially safe in the event of something bad happening to me. However, I made a terrible error of judgment. When I first filled out my "health" summary I did not even think to mention ad hoc trying of some recreational drugs in my early 20s. Yet during the 1.5 hour interview Zurich asked some specific questions and I answered honestly (as I was told I must by law!), and now I've just received an email saying my insurance request has been declined and that no one is likely to insure me given my past recreational drug use!

Given the statistical facts in Australia around "have you ever tried a recreational drug" it must mean people DEFINITELY lie when answering those questions, and so now I just feel really really STUPID for being honest. If no one will insure me, how do I protect my family in the event of my TPD or death? I'm so scared. I won't sleep knowing they will suffer from their stupid mum and her stupid youth, and my poor husband if he's left with the mortgage. And the final insult: the financial planner has hit me with a bill for $750!

Natalie

Hi Natalie,

I doubt you got knocked back for smoking a doobie.

(Sorry for my bluntness, that’s just how I … roll).

Fact is, most insurers are going to ask you about your drug use – because most people downplay it – even Presidents: Bill Clinton once said ‘I smoked weed but didn’t inhale’.

Uh-huh. Sure Bill.

What most insurance underwriters are looking for is evidence of using hard drugs (heroin, speed, cocaine, and meth), which correlates to a higher chance of risky behaviour, self-harm, permanent injury and death (and therefore a higher chance of them having to pay out).

So if I were in your shoes, I’d be mad as hell at your financial advisor.

They should have alerted you to the fact that this question would be asked, and pre-prepared back-up documentation to give to the insurer, which explains it happened over ten years ago, that you’ve been drug free since then (if you have!), and that you are now a responsible mother with no intention of dropping an ecstasy tablet and dancing to the Wiggles on a Thursday afternoon playdate.

However, now that you’ve been rejected by an insurer it will make it very difficult for you to get insurance anywhere. So I’d make sure you have basic default insurance cover via your super fund, and tell your financial advisor to stick their $750 fee in a pipe and smoke it.

Scott.