Marijuana Use: Does It Affect Life Insurance Premiums?

Marijuana use will not automatically exclude you from buying life insurance, but it can affect the rates you pay and may affect your ability to obtain life insurance coverage from certain companies. While some life insurance providers will not insure cannabis users at all, others will, but at much higher rates. The type of marijuana, delivery method, frequency of use, and type of cannabinoid may all play a role in how life insurance companies rate life policies for marijuana users.

Marijuana use and health

Marijuana use can have a wide range of health effects on the body and brain. Here are some key considerations regarding marijuana use and health:

Mental Health

Marijuana use has been linked to various mental health issues. Studies indicate that it may increase the risk of depression, anxiety, paranoia, psychosis, and clinical depression. It can also worsen pre-existing mental disorders and, in some cases, lead to long-lasting odd thoughts. Recent research suggests that early and frequent marijuana use may be a risk factor for schizophrenia, especially in young men and people assigned male at birth.

Addiction

Marijuana can be addictive, with about 1 in 10 people who use it developing cannabis use disorder. The risk of addiction increases to 1 in 6 if usage starts during the teenage years. Those with cannabis use disorder may experience negative consequences in their relationships, school, job, health, or finances but continue using marijuana despite these issues.

Brain Function

Marijuana directly affects brain function, impacting memory, learning, attention, decision-making, coordination, emotions, and reaction time. Early marijuana use may interrupt the normal development of grey matter, leading to permanent IQ loss. It can also cause short-term impairments in focus, learning, and memory, lasting up to 24 hours or longer after use.

Heart Health

Marijuana use can have immediate effects on the heart, increasing heart rate and blood pressure. It may also elevate the risk of stroke, heart disease, and other vascular diseases. The added strain, along with the tar and chemicals in marijuana, increases the chance of a heart attack or stroke, especially in older individuals or those with pre-existing heart problems.

Lung Health

Smoked marijuana can harm lung tissues and cause scarring and damage to small blood vessels. Regular marijuana smoking can lead to similar breathing problems as cigarette smoking, including ongoing coughing with coloured mucus and increased susceptibility to respiratory infections.

Pregnancy and Child Development

Marijuana use during pregnancy is associated with fetal growth restriction, premature birth, stillbirth, and problems with brain development in the child. The active compound in marijuana, THC, and other chemicals can be passed to the baby through breast milk, potentially impacting the child's healthy development.

Daily Life and Social Functioning

Marijuana use has been linked to relationship problems, worse educational outcomes, lower career achievement, and reduced life satisfaction. It can also impair driving ability, leading to slower reactions, lane weaving, decreased coordination, and difficulty reacting to signals and sounds on the road.

Honesty on life insurance applications

When applying for life insurance, it can be tempting to bend the truth or omit certain details to secure a better rate. However, lying on a life insurance application is considered insurance fraud and can have serious consequences. From denied applications to leaving your loved ones without a payout, the risks are high. Here are some reasons why honesty is the best policy when it comes to life insurance applications:

Lying can lead to denied claims or policy cancellation

If the insurance company discovers that you have lied or misrepresented yourself on your application, they may deny your claim or cancel your policy altogether. This is especially true if the lie is uncovered during the contestability period, which is typically the first two years of the policy. During this time, insurers can investigate any claims or discrepancies in your application and take action if they find inconsistencies.

Honesty ensures your loved ones are protected

Life insurance is meant to provide financial security for your loved ones in the event of your death. By lying on your application, you risk leaving them without the support they need. Being honest ensures that your policy protects your family as intended.

Lying can result in higher premiums or reduced coverage

If the insurance company discovers that you have misrepresented your health, hobbies, or other factors that increase your risk, they may adjust your premiums or reduce your coverage. For example, if you omit the fact that you engage in high-risk activities like skydiving, the insurer may increase your rates to reflect the higher risk.

Lying about smoking or drug use can have serious consequences

Lying about smoking or drug use on a life insurance application is a form of misrepresentation. If the insurer finds out, they may deny your application or charge you higher premiums. In some cases, they may even void your policy if they feel you have misrepresented yourself.

Honesty is easier than trying to outsmart the insurance company

Life insurance companies have various resources at their disposal to determine your health class and assess your risk. From medical exams and records to prescription databases and driving records, they leave no stone unturned during the underwriting process. Trying to hide or withhold information is difficult and may not be worth the potential consequences.

In conclusion, honesty is always the best policy when it comes to life insurance applications. By being upfront and truthful, you can secure coverage that truly protects your loved ones without the risk of complications later on. Comparing different policies and working with an agent can help you find the best rates without feeling pressured to hide anything.

Marijuana use frequency

Insurance companies have different standards for applicants who smoke marijuana, and the frequency of use plays a significant role in their evaluation. Some companies may offer preferred smoker rates for daily marijuana users, while others may have more affordable options for occasional users. For example, Lincoln National offers standard non-smoker rates for individuals who use marijuana up to two times a week, while Prudential and Minnesota Life offer non-smoker rates for up to two times of monthly use.

It is important to note that insurance companies may also consider the method of consumption, such as smoking, vaping, or ingesting edibles, and the purpose of use, whether recreational or medicinal, when determining rates. Additionally, being honest about marijuana use during the application process is crucial, as lying or misrepresenting information may be considered insurance fraud and can have negative consequences.

Marijuana consumption methods

Inhalation

Inhalation methods include smoking and vaping. Smoking involves lighting cannabis flowers and inhaling the smoke, which can be done through pipes, water pipes (bongs and bubblers), joints, and blunts. Vaping, on the other hand, involves heating cannabis flowers or concentrates to just below the point of combustion, creating a vapor that is inhaled. This can be done through vaporizers, vape pens, and dab rigs.

Oral

Oral consumption methods involve ingesting cannabis-infused food and drinks, commonly known as edibles. This includes baked goods, gummies, beverages, and capsules. The cannabinoids in edibles are absorbed through the digestive tract, resulting in a delayed onset of effects, typically between 20 minutes and three hours.

Sublingual

Sublingual consumption involves placing a few drops of a tincture, which is created by steeping cannabis in alcohol, under the tongue. The tincture is quickly absorbed into the bloodstream through the blood vessels under the tongue, resulting in a rapid onset of effects.

Topical

Topical products, such as balms, gels, salves, lotions, and oils, are applied directly to the skin, allowing cannabinoids to be absorbed for localized effects such as pain relief. Unlike other consumption methods, topical application does not produce any psychoactive effects.

The choice of consumption method depends on individual preferences, the desired experience, and the type of cannabis product being used. It is important to note that the frequency and method of marijuana consumption can impact life insurance rates, with some companies charging higher rates for smoking compared to other consumption methods.

Marijuana legalisation

Marijuana is currently legal for medical use in 39 out of 50 US states, and 24 states have legalised it for recreational use. Despite this, at the federal level, cannabis is still classified as a Schedule I drug, prohibiting its use for any purpose. However, federal law is not usually enforced against possession, cultivation, or intrastate distribution in states where it has been legalised.

The legal status of marijuana is complicated and varies from state to state. In some states, possession of marijuana is decriminalised, while in others, it is still illegal. The amount of marijuana that can be legally possessed also varies, with different limits for recreational and medicinal use.

The legal status of marijuana has implications for life insurance policies. While marijuana use does not necessarily preclude someone from obtaining life insurance, it can affect the premiums they pay. Life insurance companies use a health classification system with five tiers, and an applicant's health and health-related behaviours determine their rating. Marijuana users may be classified as tobacco users, which results in higher premiums. However, some companies take a more nuanced approach, considering the frequency of use, the method of consumption, and whether the use is medical or recreational.

The key consideration when applying for life insurance is honesty. Lying on a life insurance application can have serious consequences, including policy cancellation or denial of benefits. It is better to pay higher premiums than to risk leaving loved ones without coverage.

Frequently asked questions