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Do you use marijuana?
You might know that cannabis usage can affect your ability to buy life insurance. The good news is, there are plenty of ways to get affordable coverage if you use marijuana.
In this post, we reveal how life insurance companies treat marijuana users. You will also find out how much insurance will cost for them.
In the end, you can make an informed decision about getting the right policy to protect your family.
- Key takeaways:
- Over the years, life insurance companies have become more lenient in their underwriting policies for marijuana users.
- They may test for marijuana use through blood tests or a urine sample, so it's important to always be honest about your usage.
- Infrequent users of cannabis may qualify for standard rates and pay the lowest premiums.
How Do Life Insurance Companies View Cannabis Use?
Cannabis laws have changed over the past few years. As of October 17, 2018, under the Cannabis Act, the federal government legalized recreational cannabis use in Canada. Adults can legally buy cannabis and cannabis oils from provincial retailers. You can also grow up to 4 cannabis plants in your home for personal use.
As a result of legalization, more people are consuming marijuana. Some people use medical marijuana, while others are recreational cannabis users. Whatever your use case, the life insurance providers will want to know all your usage details.
How much cannabis can you consume to qualify for non-smoker rates?
A few years ago, it didn’t matter how much marijuana you used. All marijuana users were considered smokers and paid smoker premiums, which are often 2-3 times higher than non-smoker prices.
That changed in 2016 when Sun Life and BMO Insurance became the first two insurance companies in Canada to treat occasional marijuana users as non-smokers. They saw that the long-term health effects of smoking marijuana weren’t as high as smoking tobacco.
Having said that, it doesn’t mean all marijuana users are classified as non-smokers. Only infrequent marijuana users qualify for the best rates. How infrequent, you ask? Most insurers draw the line at two joints per week. If you consume more than that, prepare to pay the higher premiums of smokers.
Which life insurance companies offer insurance for marijuana users?
Since the announcement in 2016, most life insurance companies in Canada have followed suit and changed their stance towards cannabis consumption. Some of them are more strict regarding cannabis use, while others may view it as low risk and offer lower premiums.
Does it matter whether you use medicinal or recreational cannabis?
The only difference between medicinal use and recreational use is that you have an underlying medical condition for the former. You’ll need to answer the health questions to see if the medical condition warrants further inspection by the underwriter.
Can you be declined for marijuana usage?
Most companies wouldn’t decline life insurance coverage if marijuana consumption were the only concern, even if you use it a lot. However, if you have other issues related to your usage, insurers might classify you as a high risk.
For example, if you’ve lost your job because of drug use, be prepared for higher premiums or a decline.
Underwriters look at your entire situation before coming to a decision. They will consider your financial situation, health, lifestyle, family health history, and more to get a clear picture of your risk level.
Can you still get life insurance if you've been declined for marijuana use?
A decline isn’t the end of the world. Although the record will stay with you, some insurers may overlook that and still offer you a life insurance policy. However, it’s not all rosy. You may need to buy a no medical life insurance policy, which has a higher premium than standard life insurance rates.
No medical life insurance is also known as simplified issue insurance because the application is much shorter and more straightforward. Also, you don’t have to undergo any medical tests.
Should you disclose your marijuana use to insurers?
Absolutely! You may think you can get lower premiums if you don’t disclose your usage of marijuana. But the last thing you want to do is lie on the application. That’s because insurance companies can deny a claim due to fraud. Without the payout of the death benefit, you could leave your family in an unenviable financial position at the worst possible time.
Along with tobacco use and other drugs, you should always disclose your marijuana use during the application process.
Do Life Insurance Companies Test For Marijuana Use?
Depending on your age and the amount of coverage you apply for, you might not need to do a mandatory medical exam. However, the insurer has the right to order medical tests on an individual basis.
If you’re a light marijuana user (two joints or fewer per week) without any other issues related to your usage, you might be able to bypass the medical exam. It will look different if you have other factors related to your marijuana usage, including:
- Mental health issues
- Received counseling or treatment for drug usage
- Conviction of a criminal offense or suspension of your driver’s license due to drug use
And more. In these cases, the insurer may require you to undergo a medical exam. During the exam, the medical professional will take do a blood test and take a urine sample. These specimen will reveal to the insurer if you consume marijuana.
What questions do insurance companies ask about marijuana usage?
The first question related to marijuana use in the application asks about the types of cannabis used. In particular, the insurance company will ask if you have ever used any form of marijuana, such as hashish.
Next, you will need to identify how often you use the drug. On top of your frequency, insurers want to know when you first started, the average amount you use, and the last time you used it.
If insurers need more data, you might have to fill in a drug questionnaire. It asks for details like:
- If you’ve ever consulted a doctor or received treatment for drug use
- If you’ve ever lost your job, been charged with impaired driving, or been arrested due to the influence of drugs
How long does marijuana (THC) stay in the system?
Marijuana can stay in your body for a long time. The longer you smoke or take it, the longer it will be in your body. Studies show that it can be detected in your bodily fluids for up to 30 days after the last usage.
How Cannabis Use Affects Your Life Insurance Rates
Standard rates
As mentioned above, standard non-smoker premiums apply if you use marijuana up to twice per week. Here is a table showing the life insurance rates for $500,000 of coverage for a term-20 policy.
| Age | Monthly premiums for male | Monthly premiums for female |
|---|---|---|
| 20 | $31.05 | $22.50 |
| 25 | $31.05 | $23.85 |
| 30 | $31.50 | $24.30 |
| 35 | $36.45 | $29.25 |
| 40 | $51.30 | $39.60 |
| 45 | $85.50 | $59.85 |
| 50 | $141.30 | $94.05 |
| 55 | $234.45 | $169.20 |
| 60 | $423.90 | $305.10 |
| 65 | $696.15 | $474.75 |
Smoker rates
If your marijuana use exceeds the threshold, you have to pay the higher insurance premium of smokers.
| Age | Monthly premiums for male | Monthly premiums for female |
|---|---|---|
| 20 | $54.90 | $30.60 |
| 25 | $55.80 | $35.10 |
| 30 | $61.65 | $42.75 |
| 35 | $88.65 | $66.60 |
| 40 | $136.80 | $99.90 |
| 45 | $223.20 | $150.75 |
| 50 | $395.10 | $234.45 |
| 55 | $587.70 | $368.10 |
| 60 | $916.65 | $621 |
| 65 | $1,361.25 | $899.10 |
Simplified issue smoker rates
Declined for standard life insurance? Your best bet is a simplified issue policy. Although the insurance company might still consider you a smoker, there are fewer health questions, making it easier to qualify.
| Age | Monthly premiums for male | Monthly premiums for female |
|---|---|---|
| 20 | $54 | $40.50 |
| 25 | $54 | $41.85 |
| 30 | $62.10 | $52.20 |
| 35 | $81.90 | $71.55 |
| 40 | $126.45 | $96.75 |
| 45 | $217.80 | $166.05 |
| 50 | $381.15 | $282.60 |
| 55 | $624.60 | $396 |
| 60 | $985.50 | $585 |
Can you change from smoker to non-smoker rates if you stop using marijuana?
Similar to tobacco use, you can. If you’ve stopped using cannabis for 12 months, you can apply to the insurance company to re-rate you as a non-smoker. So if you’re tired of paying a high premium for coverage, there’s still a chance you can reduce your costs.
What is the best life insurance policy for cannabis users?
The best insurance policy is the one that provides a financial safety net for your family if you pass away. For most people, this will be a term life insurance policy.
Not every insurance company treats cannabis users the same way. Finding one that approves you at the lowest rates isn’t easy. As life insurance advisors, we understand the insurance companies’ underwriting standards. Let us help guide you through the entire process.
Looking For Life Insurance For Marijuana Users?
As you can see, you have lots of options for life insurance if you are a marijuana user. Your rates could be very affordable, too, depending on your usage.
Contact us today for a free consultation and customized life insurance quote to protect your family. We’ll help you find the best plan for your needs and lifestyle.
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While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
