Life insurance claims are increasingly denied based on marijuana or cannabis related exclusions. These denials occur even in states where marijuana is legal for medical or recreational use. Insurers rely on policy language, federal classification rules, and application disclosures rather than state legalization laws.
A denial based on marijuana use is not automatically valid.
How Marijuana Is Treated in Life Insurance Policies
Most life insurance policies classify marijuana as a drug, regardless of state law. Policies often group cannabis with controlled substances and apply exclusions related to drug use, intoxication, or impaired judgment.
Legal status does not control coverage. The written policy terms do.
Common Grounds for Marijuana Related Denials
Insurers typically deny claims involving marijuana on one or more of the following grounds:
Drug or Intoxication Exclusions
Some policies exclude death occurring while the insured is under the influence of drugs. Insurers may argue that the presence of THC alone triggers the exclusion, even if marijuana did not cause the death.Alleged Misrepresentation on the Application
Insurers frequently claim the insured failed to disclose marijuana use when applying. These denials are most common during the contestability period.Risk Classification Arguments
Insurers may assert that marijuana use would have affected underwriting decisions, premium pricing, or policy issuance.Causation Assumptions
Some insurers deny claims by assuming marijuana impaired judgment or contributed to the death without medical or factual support.
Legal Marijuana Does Not Automatically Void Coverage
State legalization does not expand or restrict life insurance coverage. Insurers are permitted to enforce policy exclusions even when marijuana use is lawful.
However, insurers must still prove that the exclusion applies under the specific facts and policy language.
Materiality Is Required for Application Based Denials
When denial is based on nondisclosure, the insurer must show that marijuana use was material. Materiality generally requires proof that disclosure would have changed underwriting outcomes.
Minor, infrequent, or medically prescribed use often does not meet this threshold.
Causation Is Often Disputed
Many policies require a connection between drug use and the cause of death. The mere presence of THC does not necessarily establish causation.
Denials frequently fail when insurers cannot demonstrate that marijuana contributed to the loss.
Contestability Period Issues
Most marijuana related denials occur within the first two years of the policy. During this period, insurers are allowed to investigate applications, but they must still comply with state rescission laws and procedural requirements.
After the contestability period expires, denials based on nondisclosure become significantly harder to sustain.
Documentation and Investigation Errors Are Common
Insurers often rely on toxicology reports without medical interpretation. They may ignore dosage, timing, tolerance, or alternative causes of death.
Incomplete or biased investigations weaken the validity of these denials.
What Beneficiaries Should Review After a Marijuana Based Denial
If a claim is denied based on marijuana use, beneficiaries should examine:
The exact policy exclusion relied upon
Whether marijuana is specifically referenced in the policy
Whether causation is required under the contract
Whether the insured disclosed use on the application
Whether the denial occurred within the contestability period
Whether the insurer followed proper rescission procedures
Many denials fail under close policy review.
These Denials Are Frequently Overturned
Marijuana related life insurance denials are commonly reversed on appeal or through litigation. Insurers often overextend exclusions or rely on assumptions unsupported by policy language or medical evidence.
Legal challenge is often effective.
Legal Help Is Critical in Drug Exclusion Cases
Drug related denials involve policy interpretation, medical evidence, and underwriting standards. Insurers rely on beneficiary confusion and stigma surrounding cannabis use.
An experienced life insurance attorney can force the insurer to justify the denial under the actual contract terms and applicable law.
Denied Due to Marijuana Use? We Can Help.
If a life insurance claim was denied based on marijuana or cannabis use, do not assume the insurer is correct. Many of these denials are improper and legally unsupported.
Our firm focuses exclusively on denied life insurance claims nationwide, including drug exclusion disputes. We know how insurers misuse marijuana related arguments and how to force payment. Contact us for a free case review.