Getting High Doesn’t Mean You’ll Have A High Premium
Marijuana consumption is one of the rapidly changing topics in the life insurance world. Just a short time ago consuming marijuana would be considered taboo and no life insurance company would be willing to offer insurance to an individual who used marijuana. Now with a better understanding of Marijuana some treatments are being considered a superior alternative to traditional Western medical treatment.
Although all insurance companies care about the frequency of consumption of marijuana almost every company will view marijuana completely different from one another. The majority of insurance companies would ultimately give a very expensive smoker rate for coverage which is typically twice the price as a non smoker rate. However there are a handful of life insurance companies that are leading the industry with offering better prices and more lenient underwriting and are able to give non-smoker rates and even as good as preferred plus pricing which is the most optimal pricing available.
You can divide the insurance companies opinion of Marijuana consumption into two different categories,
- Recreational marijuana consumption.
- Medical marijuana consumption.
Recreational Marijuana Use
This would be defined as someone who is using Marijuana for recreational purposes and without a prescription from a physician. In this scenario you will have specific guidelines for how often Marijuana is recreationally used. Oftentimes an individual will disclose infrequent usage which is really no big deal to the insurance companies. However, as soon as we start to disclose Marijuana consumption a couple times a week or more, we need to be strategic with which insurance company we apply with. Many companies are still not interested in insuring someone who uses recreational Marijuana on a daily basis.
Be sure to submit a request for information to find out the specific guidelines on how much recreational marijuana can be consumed on a weekly basis and still qualify for the best possible pricing.
Medical Marijuana Use
This category would be the group of people who have been fortunate enough to be prescribed Marijuana treatment by a physician to help with a health ailment. Oddly enough the insurance companies make a significant distinction between Recreational Marijuana and Medical Marijuana. In this category by providing evidence that you have been prescribed Medical Marijuana by a physician, or by using a cannabis card or even the actual prescription, the insurance companies will underwrite the pricing of coverage based on the reason the Medical Marijuana is prescribed. In many scenarios we see Medical Marijuana prescribed as a versatile treatment that can help people in many ways such as:
- Stimulate Appetite
- And many others
Below are a few logical examples of why underwriters would rather see an insured using Medical Marijuana as substitute from most western medicine treatments:
Marijuana instead of Narcotic pain meds
Marijuana instead of Sleep aids
Marijuana instead of Immunosuppressants
Marijuana instead of Antidepressants
It is important to answer the questions on the application about Marijuana honestly and truthfully. The insurance company will routinely test for Marijuana and THC during the paramedical exam. If an individual tests positive without disclosing usage, the insurance companies could decline that individual for coverage and report lack of candor to the Medical Information Bureau making it difficult for that individual to ever find coverage from any company.
If you need some advice or want to strategize on how to get the best possible pricing for your own personal life insurance coverage, please feel free to submit a request for more information.
At Redwood Life Group we are well equipped to navigate through the confusing underwriting guidelines of each company and lead you to the insurance company that will provide you that needed peace of mind at a price that isn’t a big piece of the pie.
*Disclaimer none of this is medical advice, please consult your doctor about Marijuana.