Yes, there are drug test performed when you apply for life insurance, including term life insurance coverage.
Usually, a life insurance company may require a drug test if you are a certain age, or requesting a certain amount of life insurance over $100,000. Or, depending on your answers the questions on the application for life insurance they may request a drug test.
Term life insurance drug tests may check for many different things in your system, including legal prescription drugs, and illegal drugs, such as, cocaine, marijuana, methamphetamine, etc.
If you test positive for illegal drugs you will probably be declined for life insurance.
If you test positive for legal drugs you did not mention on the application, your rate may be increased, or the amount of life insurance limited, depending on the drug, your health, and the insurance company.
Here's how you can learn more about term life insurance drug tests and how they work.