Losing a loved one is already one of life’s most painful experiences. But that pain often intensifies when an expected life insurance payout is unexpectedly denied. In recent years, an increasingly common reason for denial has emerged: marijuana use. Whether for medical or recreational purposes, marijuana consumption—even when legal under state law—can still lead to serious complications when filing a life insurance claim.
Despite the legalization of marijuana in many states, most life insurance companies still classify it as a risky behavior. Policies may contain drug use exclusions that include cannabis, regardless of legality. For families left behind, this can create confusion, financial strain, and the need for legal intervention. If you need a Washington life insurance lawyer give us a call.
Why Failing to Disclose Marijuana Use Can Void a Life Insurance Policy
When applying for life insurance, applicants are asked to disclose lifestyle habits—including tobacco, alcohol, and drug use. This includes cannabis, even if prescribed or legally consumed in your state. Some individuals choose to leave marijuana off their application, thinking it’s minor or irrelevant. Others assume legality protects them. But omitting this information can result in a denial, especially if the insured passes away within the policy's contestability period.
Example: A man in Colorado applied for a $500,000 policy and claimed he was a non-user of drugs. Fifteen months later, he died in a work accident. A toxicology report showed THC in his system. The insurer reviewed his application, deemed the omission a material misrepresentation, and denied the claim.
The contestability period, typically the first two years of the policy, allows insurers to investigate the application and determine whether any misstatements were made. If marijuana use was not disclosed, and the insurer discovers it after the insured’s death, they may argue the policy was obtained through fraud—even if marijuana played no role in the cause of death.
Can Legal Marijuana Use Still Lead to a Life Insurance Claim Denial?
Yes, it can. The legality of marijuana at the state level does not override insurance company policy language. Many life insurance policies still treat marijuana as a drug under federal guidelines. Some policies even contain explicit clauses that deny coverage if the insured dies while under the influence of cannabis.
Example: A woman in California legally used medical marijuana for chronic pain. She died of a heart attack. Because her policy had a drug-related death exclusion, and toxicology revealed THC in her system, her family’s claim was denied—even though marijuana did not cause her death.
Some policies also treat marijuana use as a high-risk activity, similar to tobacco or excessive alcohol consumption. This can result in higher premiums or policy exclusions. If the insurance company believes marijuana use was intentionally hidden or contributed to a risky lifestyle, they may use that to justify denial.
How Insurers Use Marijuana in Contestability Investigations
Marijuana becomes particularly problematic when death occurs during the contestability period. During this time, insurers can cancel or rescind the policy if they find false answers on the original application. The presence of THC in the deceased’s system often triggers a full investigation—even if the death was accidental or unrelated.
Example: A 32-year-old man in Nevada died in a motorcycle crash 18 months after his policy began. His insurer found THC in his blood and reviewed his application, where he denied drug use. They argued that had they known about his cannabis consumption, they would have either declined coverage or issued a higher premium. The claim was denied based on misrepresentation.
In many cases, beneficiaries are shocked to learn that even legally prescribed marijuana can lead to exclusion-based denials. The insurer's internal guidelines—not state law—determine whether a payout is owed.
How to Challenge a Denied Life Insurance Claim Involving Marijuana Use
If your life insurance claim has been denied due to marijuana use, you have the right to challenge that decision. The first step is to examine the denial letter and policy language closely. You’ll want to determine:
Whether marijuana use was actually excluded under the terms
If the insured disclosed cannabis use when applying
Whether the insurer proved that marijuana caused or contributed to the death
If the denial occurred within the contestability window
Many denials based on drug use, including cannabis, are overturned when the insurer’s reasoning is challenged. It’s often possible to prove that marijuana use had no causal connection to the death, or that the insured did not violate any clearly stated policy terms.
Why a Life Insurance Lawyer Is Crucial for Drug-Related Claim Denials
Cases involving marijuana and life insurance require deep legal expertise. Insurers count on the fact that most beneficiaries won’t know how to respond to a complex denial. But an experienced life insurance attorney can step in and build a powerful appeal. Our firm drafts detailed 100–200-page legal briefs that include policy analysis, toxicology interpretation, case law, and medical findings. We’ve successfully overturned denials involving marijuana, prescription medications, and other drug-related exclusions—even in highly contested cases.
Example: We recently handled a case where a 40-year-old father died of pneumonia. A toxicology screen found minimal THC, and the insurer denied the $750,000 claim, citing substance use. We proved marijuana had no role in his death and that he had fully disclosed cannabis use on the application. The claim was paid in full.
If the claim involves an employer-provided policy, you may also be facing ERISA regulations, which limit your appeal rights and make timing critical. In those cases, the appeal must be handled with precision, as beneficiaries often get only one chance.
Don’t Let a Marijuana-Related Denial Rob Your Family of Benefits
Whether marijuana use was legal, medical, or recreational, you still have legal rights. Life insurance companies often overreach in denying claims related to drug use. If you received a denial due to cannabis—even if there was THC in the system at time of death—consult a knowledgeable life insurance attorney immediately. Your loved one paid for that policy to protect you. Let us help you hold the insurer accountable.