Does Smoking Pot Affect Your Life Insurance?

Marijuana use is becoming increasingly common in the United States, with a majority of Americans supporting its legalisation for both medical and recreational purposes. Despite this, marijuana remains a federally illegal controlled substance, and many experts have expressed concerns about potential health risks associated with its use.

Life insurance companies want to know as much about you as possible before offering you a policy. They will consider your health, lifestyle, and any underlying conditions when determining your eligibility and premiums. Marijuana use, whether recreational or medicinal, can affect your life insurance rates, depending on the insurance company. Some insurers may categorise marijuana users as tobacco smokers, resulting in higher premiums, while others may have distinct rating categories for marijuana or vape users.

It is important to be honest about your marijuana use when applying for life insurance. Lying or omitting information could result in a denied claim or increased premiums. Working with an independent broker can help match you with an insurer that treats your situation most favourably.

How much does life insurance cost for marijuana users?

Marijuana users can get life insurance, but they may have to pay higher premiums. The cost of life insurance for marijuana users depends on several factors, including age, gender, health, lifestyle habits, the amount of coverage, and the type of policy. For example, a 30-year-old male in good health who uses marijuana three to four times per month can expect to pay around $29 per month for a 20-year term life insurance policy with a $500,000 payout. On the other hand, a 30-year-old female with a similar profile may pay around $23 per month for the same policy.

Marijuana use is just one factor that insurance companies consider when determining life insurance rates. Carriers use multiple life insurance ratings classes to assess how risky an applicant is to insure. Other factors that influence rates include age, gender, height and weight, medical history, prescription drug records, and lifestyle habits.

The frequency of marijuana use also impacts the cost of life insurance for users. People who rarely use marijuana may pay similar rates to non-users, while premiums generally increase with more frequent cannabis use. For example, a 30-year-old male in excellent health who never uses marijuana may pay around $29 per month for a $500,000, 30-year term policy. In comparison, the same individual who uses marijuana six times a week may pay around $88 per month for the same policy.

Additionally, the method of consumption matters. Insurance companies generally consider ingesting marijuana through edibles, oils, and vaporizers less risky than smoking cannabis. Furthermore, medicinal marijuana is viewed more favourably by insurers than recreational use. When it comes to medicinal use, insurers are more concerned about the underlying health condition that marijuana is being used to treat.

It's important to note that not all insurers assess marijuana use in the same way, and some companies may decline coverage for daily marijuana users. Therefore, marijuana users should compare quotes from different insurers to find the best possible rate.

Does marijuana use impact life insurance rates?

Marijuana use can impact life insurance rates, but the degree to which it does varies across insurance companies. Some insurers may not penalise recreational users or treat marijuana use as a risk factor, while others may view excessive use as risky but not penalise occasional users. The impact of marijuana use on life insurance rates is a grey area and depends on various factors, including the legal status of marijuana in the user's state, the user's health, and the insurance company's policies.

Health Classification System

Insurance companies use a health classification system to rank applicants into five tiers: preferred plus, preferred, standard plus, standard, and substandard. The better an applicant's health and health-related behaviours, the better their ranking. Marijuana users may be classified as tobacco users and placed in the substandard tier, resulting in higher premiums. However, some insurers take a more nuanced approach and do not raise rates solely for marijuana use but consider any underlying health conditions that marijuana is being used to treat.

Factors Considered by Insurers

When determining how marijuana use impacts life insurance rates, insurers may consider the following factors:

• Recreational vs. Medical Use: Some insurers view recreational use as a warning sign of health risk, while others see medical use as a higher risk.
• Method of Consumption: Smoking marijuana is generally considered less healthy than other methods such as vaping, edibles, or oils. Insurers may differentiate between these methods when determining rates.
• Frequency and Quantity of Use: Less frequent marijuana use may be considered a lower health risk, while more regular and heavy consumption could result in higher premiums.
• Type of Cannabinoid: The primary cannabinoid in marijuana, THC, is associated with its mind-altering effects. CBD, on the other hand, is often used for anxiety reduction and muscle relaxation. The presence of THC or CBD in marijuana products may be a distinguishing factor for insurers.

Tips for Marijuana Users Applying for Life Insurance

• Honesty: It is crucial to be honest about marijuana use during the application process. Lying or omitting information could result in denied claims or policy cancellation.
• Shop Around: Different insurers have varying policies regarding marijuana use. It is beneficial to compare quotes and policies from multiple companies to find the most suitable coverage at competitive rates.
• Work with an Independent Broker: Independent brokers have access to various insurers and can help match you with the most suitable company based on your marijuana use.
• Medical Examination: Consider taking a break from marijuana use and increasing water intake leading up to your medical exam. A negative THC result, even with admitted use, may be viewed more favourably by insurers.

How to qualify for life insurance if you use marijuana

Marijuana use is a grey area for life insurance companies, and different insurers take different approaches to dealing with applicants who test positive for marijuana or admit to using it. However, it is possible to qualify for life insurance if you use marijuana. Here are some steps to increase your chances of securing affordable coverage:

• Work with an independent broker: Independent brokers have access to various insurers and understand how different companies evaluate marijuana use. They can match you with the most suitable insurer for your particular situation, increasing the likelihood of favourable terms.
• Be honest about your use on your application: Honesty is paramount in the application process. While admitting to marijuana use might seem risky, lying or omitting information could result in a denied claim later on. Your agent needs to know upfront to match you with the right insurer and set proper expectations.
• Take precautions leading up to your medical exam: Prior to your medical exam, take a break from marijuana for a week. Drink lots of water to flush your system and maximise your body's general physical performance. If your marijuana usage is medicinal, have relevant medical documents handy.

The cost of life insurance for marijuana users will depend on various factors, including age, gender, health, lifestyle habits, and the amount of coverage and type of policy. The frequency of marijuana use will also impact pricing. Occasional marijuana users can sometimes qualify for non-smoking rates, depending on the company.

When applying for life insurance, you will likely be asked about your marijuana use, including how often you use it, whether you use synthetic or botanical cannabis, if you have been treated for substance misuse disorder, and if you use marijuana to treat a medical condition. It is important to be honest about your marijuana use. Lying on a life insurance application can result in denial or cancellation of your coverage.

How insurance companies evaluate marijuana use

Marijuana use is becoming more accepted and legalised for medical and recreational purposes. However, for those seeking life insurance, it is essential to understand how insurance companies evaluate marijuana use, as it can impact the rates and coverage offered. Here is an overview:

Recreational vs Medicinal Use:

Insurance companies differentiate between recreational and medicinal marijuana use. For recreational users, insurers focus on the frequency and method of consumption. Occasional use may result in higher premiums, while daily use could lead to even higher premiums or a decline in coverage. For medicinal users, insurers are more concerned about the underlying health condition being treated than the marijuana use itself.

Smoking vs Ingesting:

Insurance companies generally view non-smoking methods of marijuana consumption, such as edibles, oils, and vaporizers, more favourably than smoking.

Frequency and Quantity:

The frequency and amount of marijuana consumed are crucial factors. Occasional use may have a minimal impact on premiums, but heavy or frequent use will likely result in higher rates.

Health and Lifestyle Factors:

In addition to marijuana use, insurers consider various individual factors, including age, gender, health status, lifestyle habits, prescription history, driving record, and criminal background. These factors are evaluated to determine the risk associated with insuring an individual.

Honesty and Disclosure:

It is paramount to be honest about marijuana use during the application process. Lying or omitting information could result in denied or cancelled coverage, or even a denied claim. It is also important to note that insurers may request specific records, including driving records, prescription history, medical records, and criminal background checks, to gain a comprehensive view of the applicant.

Working with an Independent Broker:

Engaging the services of an independent broker can be advantageous as they have access to multiple insurers and understand how different companies evaluate marijuana use. They can help match you with the most suitable insurer for your situation and increase the likelihood of obtaining favourable terms.

In conclusion, while marijuana use may not automatically disqualify an individual from obtaining life insurance, it is essential to recognise that insurance companies evaluate marijuana use based on various factors. These factors ultimately influence the rates offered and the likelihood of approval for coverage.

The insurance industry's view on marijuana

The insurance industry has been actively adapting its guidelines regarding marijuana use, attempting to keep up with societal changes and scientific research. However, the industry faces a big challenge due to the lack of comprehensive long-term studies on the effects of marijuana usage. Unlike alcohol and tobacco, the research on marijuana's impact on mortality risk is still inconclusive. As a result, insurance companies' stances on marijuana vary widely.

Some insurers don't penalise recreational users, while others may view excessive marijuana use as risky but won't penalise occasional users. The state where the insured person lives, and whether marijuana is legal there, could also affect how a life insurer views their marijuana usage.

When evaluating marijuana use, insurers consider various factors, including:

• Recreational vs Medicinal Use: For casual or recreational users, insurers may focus on the frequency and method of consumption. Some may be more lenient with occasional use, while daily use might lead to higher premiums or even a decline in coverage. When marijuana is prescribed for a medical condition, insurers may focus less on the marijuana itself and more on the underlying health condition being treated.
• Smoking vs Ingesting: Insurance companies may differentiate between smoking marijuana and consuming it through edibles, oils, or vaporizers. In general, non-smoking methods are viewed more favourably.
• Frequency and Quantity: The frequency and amount of marijuana consumed play a role. Occasional use might not significantly impact premiums, but heavy use could.
• Type of Marijuana: The type of marijuana being used—whether medical or recreational—can also play a role in how life insurance companies view it. Some companies see recreational use as a warning sign of health risk, while others see medical use as a higher risk.
• Frequency of Use: How often a person uses marijuana can also be a factor. Less frequent use may be considered a lower health risk, while more regular consumption could be seen as a higher risk.
• Type of Cannabinoid: Life insurance companies may also distinguish between the primary cannabinoids THC and CBD. THC is the compound that causes the mind-altering effects of marijuana, while CBD is often used for anxiety reduction and muscle relaxation. Hemp plants, which are federally legal, contain less than 1% THC by volume.

Overall, the insurance industry's view on marijuana is varied and depends on multiple factors. Insurers are still adapting to changing societal norms and the legalisation of marijuana in many states, as well as the lack of long-term research on its effects. As a result, marijuana users may find different rates and coverage options depending on the insurer.

Frequently asked questions