Many people who use marijuana might be wondering if their drug use will prevent their loved ones from receiving their life insurance payout upon their passing. Generally, the answer is: it depends. Most life insurance policies have several exclusions written into it. Marijuana use alone shouldn’t preclude you from being able to purchase a life insurance policy. However, it might be more expensive, depending on the company you choose to purchase the policy from. In some situations, marijuana use will prevent your loved one from collecting a payout upon your passing. If you need a denied life insurance claim lawyer, we are here to help.
Material Misrepresentations and Life Insurance Claims
Material misrepresentations are one of the most common reasons that life insurance companies refuse to pay out benefits. If you fail to disclose your use of marijuana on your life insurance application, this could be a reason that your beneficiary’s claim will be denied at a later date. At the time of the application, most insurance companies don’t investigate your answers; they simply take them at face value. However, when the time comes, if they find out that you were lying, they will deny the claim. Just because a person was sold and approved for a life insurance policy doesn’t mean there’s no way for the company to challenge the payout. I you need a denied AD&D claim lawyer, we can help.
Illegal Drug Exclusion Life Insurance Claim
Many life insurance policies also have an illegal drug exclusion. The exclusion usually states that a claim will be denied if the insured’s illegal drug use was the cause or contributed to the death of the insured. The way the policy is worded can end up determining what will happen if illegal drugs are found to be in your system after death, even if they weren’t the cause of death. Therefore, it’s imperative to read all of the fine print before you pay for and take out a life insurance policy. You should also speak with an attorney first in order to make sure that the policy is fair and reasonable.
Marijuana Is Legal In Some States – What Does This Mean For Life Insurance?
While marijuana is still illegal federally, it’s legal recreationally and/or medicinally in the majority of states. Many life insurance policies will try to avoid making payouts when the insured dies if they are found to have marijuana in their system at the time of death, even if marijuana is legal in that state. Whether their denial will stand a legal test most likely depends on the wording of the policy. If the policy simply states that claims will be denied if the insured uses illegal drugs, this can probably be challenged. If you’re asked if you use drugs on the application, and you say no because you only use marijuana medicinally, they may be able to successfully deny your claim based on a material misrepresentation.
Driving Under The Influence and Life insurance Claim
If your death is a result of driving while under the influence of marijuana, even if you have a medical marijuana card, your life insurance claim will likely be denied. This is because it’s illegal to drive after smoking marijuana, and almost all life insurance policies have an exclusion for a death that is caused by participating in illegal activities.