Substance dependency, often called substance use disorder, describes a chronic condition in which an individual develops physical and psychological dependence on alcohol, prescription medications, or illicit drugs. It is characterized by tolerance, withdrawal symptoms, compulsive use, and continued use despite harm. Dependency typically requires ongoing treatment, such as counseling, medication-assisted therapy, and support groups, and relapse is common. Health consequences can include organ damage, cognitive impairment, mental health disorders, and increased mortality from accidents or overdose. For life and disability insurers, substance dependence indicates high risk and demands detailed underwriting evaluation focused on stability and duration of recovery.

Underwriters distinguish isolated substance abuse episodes from long-term substance dependency, giving greater scrutiny to applicants with multiple relapses, prolonged heavy use, or coexisting psychiatric conditions. They review rehab histories, medical records, and participation in recovery programs such as AA or medication-assisted treatment. Many carriers impose minimum sobriety periods-often several years-before considering standard or even rated offers. Advisors help clients understand these requirements, gather supporting documentation, and, if appropriate, pivot to group or guaranteed issue options. Understanding substance dependency allows advisors to navigate underwriting more effectively and to approach clients' circumstances with empathy and realism.