Marijuana use can impact whether a life insurance claim gets paid—but it doesn’t always lead to denial. Life insurance companies look closely at two key things: how marijuana use was disclosed during the application process and whether it contributed to the insured’s cause of death. As attorneys who specialize in denied life insurance claims, we’ve seen insurers deny payouts over marijuana—even when the drug was legal in the state where the insured lived.
If your claim has been denied for marijuana use or drug-related exclusions, our lawyers can help.
Material Misrepresentations: A Common Denial Tactic
One of the most frequent reasons life insurance claims are denied is material misrepresentation. This occurs when:
The applicant falsely answers questions on the life insurance application
The insurer later discovers the truth during the claims process
The misstatement would have affected the insurer’s decision to issue or price the policy
Many applications ask whether the insured uses any drugs—including marijuana. If someone answers “no,” and it’s later discovered they were a regular marijuana user, the insurer may deny the claim for misrepresentation, even if marijuana use had nothing to do with the death.
Important Note: Insurers don’t always verify answers at the time of application. They often wait until after death to look deeper—when a claim is filed and there’s a reason to avoid a payout.
Drug Exclusion in Life Insurance Policies
Many life insurance policies include an illegal drug exclusion. This clause allows insurers to deny claims if:
The insured’s death was caused by illegal drug use
The drug use contributed to the death, even indirectly
The drug was in the insured’s system at the time of death
But what if the drug was marijuana—and marijuana was legal where the insured lived?
This is where things get tricky. Some insurers deny claims simply because marijuana is federally illegal, even if it’s legal at the state level. Whether that denial stands depends heavily on:
How the policy defines “illegal drugs”
Whether federal law or state law governs the policy
Whether the marijuana use had anything to do with the cause of death
Marijuana Is Legal in Many States—Does That Help?
Yes and no. While over 30 states have legalized marijuana for medical or recreational use, life insurers often default to federal law when applying exclusions. That means:
Even legal, prescribed marijuana use could lead to a denied claim
The key factor is often how the policy is worded and whether the insurer treats marijuana as an illegal substance under federal guidelines
If a policyholder used marijuana legally and disclosed it honestly on the application, the insurer should not deny a claim based on marijuana use alone. However, if the insurer finds marijuana in the deceased’s system and chooses to treat it as an illegal drug, a denial could follow—especially if they claim it contributed to the death.
Driving Under the Influence of Marijuana
Even if marijuana is legal in your state or prescribed by a doctor, driving under the influence is illegal everywhere. If the insured dies in a car crash and is found to have THC in their system:
Most insurers will deny the claim under an exclusion for illegal or criminal acts
It doesn’t matter whether the THC caused the crash—its presence may be enough to invoke the exclusion
A DUI death involving marijuana is almost always treated the same as one involving alcohol or other substances
What You Can Do to Protect a Claim
If you or your loved one uses marijuana, here are steps to help protect your life insurance claim:
Disclose marijuana use honestly on the application
Read the policy language closely, especially around drug use and criminal activity
Consult a life insurance attorney before applying if you have concerns about medical marijuana or legal cannabis use
Challenge any claim denial—especially if marijuana use was legal, unrelated to the cause of death, or was fully disclosed
Denied Life Insurance Claim Due to Marijuana? Call Us Today
We’ve helped numerous families recover benefits after insurance companies denied claims based on marijuana use, drug exclusions, or material misrepresentation. Whether the claim was denied after a DUI-related crash, or because the insurer treated marijuana as an illegal drug despite state law, we know how to fight back. If you have a beneficiary dispute attorney in North Dakota call us.
Our services include:
Reviewing your policy and application
Identifying improper denial tactics
Appealing denials and negotiating directly with insurers
Filing lawsuits when necessary to enforce payment
Don’t let the insurer write off your claim with a vague exclusion. We’re here to help.