I recently had a conversation with one of our marketing partners on the subject of how various life insurance companies deal with insuring cannabis users. It was a good talk and I learned a few things (which is always a good thing).
A little background first. Back in the 1990's, only around 24% of the population was in favor of legalizing (actually "decriminalization" is the correct term) marijuana, but views have changed a bit and that number is currently around 66%. With more and more states making cannabis legal in some form or fashion over the last 20 years, the insurance industry has had to adapt and alter their own guidelines.
So how does all of this affect the rates of cannabis users? Can they get a life insurance policy and what happens to the rates?
You actually may be surprised to know that there are plenty of carriers out there who are insuring cannabis users, and they are not just limited to those no-exam companies.
Actually, one can still be approved a traditional life insurance policy if they use marijuana. Like policies for tobacco users, which have slightly higher premiums, many companies treat cannabis the same.
But there are a few factors to figure into the equation when they determine rates. Some of these are gender, general health condition and if the applicant is using marijuana recreationally or as a medical prescription.
When you consider that tobacco has more known negative health affects than marijuana, the rates can be comparable to "smoker" rates, or even less in some cases. Ultimately, the most successful way to get the best life insurance rates is to shop around and compare multiple insurance companies. That way one can find out what policies are out there and best suit their needs.
At Surf Financial Brokers we offer a very easy-to-use quoting tool that asks about cannabis use, with a good selection of carriers, their rates and other information. And if someone sees a policy they like, they can even start an application.
Keep in mind that when it comes to calculating insurance rates for cannabis users there is not a homogenous answer. Each company sets it's own rates and underwriting guidelines. Therefore, how companies view marijuana use will vary from carrier to carrier.
One thing to keep in mind is that marijuana is used to treat a wide variety of medical conditions, from pain to anxiety. The insurance company's underwriters may be more concerned with those medical conditions that require treatment with marijuana than the actual prescription.
This means that one's premiums could be higher as a result of health risks like cancer or auto-immune diseases which are being treated with cannabis, instead of the cannabis use itself.
But there are those people who use marijuana not for medicinal purposes but just recreational use. For those folks, many insurers will still issue a policy. How the policy is issued (as a tobacco smoker or non-smoker) is determined by usage, frequency and other factors. As mentioned earlier, each company has their own guidelines.
Underwriters may as more questions concerning how one uses marijuana (edibles, smoking, tincture, etc.) and quantities. They may also be concerned about any other drug usage, including alcohol. Much like long term care insurance underwriting, they might try to "connect the dots" to see if the applicant has general "lifestyle" concerns.
Most of the underwriter's questions will be about frequency. The less often one partakes of cannabis, the lower their life insurance rates can be potentially. Someone who smokes once a month will have a lower rate (in some cases it doesn't affect the rate at all) than the person who enjoys a joint daily.
If you are an occasional user and still need life insurance, let us know. Or take a look at our quoting tool and run a quote for yourself. In the meantime, please stay healthy!
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!
