Top Marijuana Exec Denied Life Insurance

A major insurance company in the United States apparently has a policy of its own: It won’t provide life insurance to people in the legal marijuana industry.

The affair raises broader issues about the ability of marijuana industry employees and executives to secure life insurance and other benefits.

The issue came to light when Derek Peterson, the CEO of Terra Tech, tried to obtain a life insurance policy from Mutual of Omaha, and was denied. In a letter to Peterson, the company stated explicitly that the reason for the denial is because Terra Tech is a cannabis company.

“We cannot accept premium(s) from individuals or entities who are associated with the marijuana industry,” reads the denial letter, which was dated June 13, according to U.S. News and World Report.

Peterson called the rejection “ridiculous and archaic at this point,” despite already having endured plenty of bank account closures – a common problem for those in the marijuana trade.

Terra Tech has marijuana business interests in California and Nevada, and Peterson acknowledged on his policy application that he uses cannabis personally. Now, however, he’s concerned that it will be difficult to obtain further benefits for his employees.

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6 comments on “Top Marijuana Exec Denied Life Insurance
  1. Jeff Jamieson on

    This must have been a buy sell funding or a policy owned by the business. If he was seeking Life Insurance as an indivual that is not a problem as a recent survey found:80% of companies have an underwriting policy in place for marijuana users, and 29% of those companies classify marijuana users as non-smokers.

    Contact a reputable Insurance Broker that deals with MMJ users like me.

    • Christy on

      My spouse also declined “life insurance” because associated with our industry. It was straight term life – not buy/sell.
      Company was New York life, I believe.
      May I ask what company you had success with?

    • mary RN on

      Marijuana is listed as a schedule 1 drug. WE all know how stupid, for lack of a better word at this point, that really is. This is a great example as to why cannabis needs to be descheduled. In fact, read about the endocannabinoid system and how cannabis heals and promotes wellness. Cannabis kills cancer cells but not healthy cells. Arcadic? Or ignorant to dismiss the benefits. A cannabis user is known to live longer than an opiod user, or perhaps other clients of mutual of omaha with other issues. It is judgmental and discriminatory. Not good business move on their part,

    • Matt on

      I mean, most people already have life insurance. Those who don’t or those switching will probably look for the cheapest…which is smart seeing as you pay it for literally your entire life.

      You can’t really be mad that they decided they don’t want to cover them. Insurance companies deny people all the time…and if you’re using Medical Marijuana then supposedly you have a serious medical condition (which means they don’t really want to cover you in the first place).

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