With medical marijuana being so popular among patients and the cannabis laws in Canada changing, insurance companies have dramatically changed the way they underwrite Marijuana use.
Today marijuana users can easily apply for life insurance as per Pamela Kwiatkowski, Former Vice President at Assumption Life (watch the video).
There is a plethora of options for marijuana users. Coverage depends mainly on how much and how often one is using marijuana; these factors will determine the rate and the type of coverage for the individual.
When applying, you may be asked to complete a drug questionnaire, as well as other various tests to determine if your policy will be issued as regular non-smoker rates or if you will have to pay a higher rating on your policy (meaning you pay a higher premium).
You may also want to look at a No Medical Life Insurance, where you won’t need to complete any medical tests. More on that below.
Premiums for marijuana users may be based on the amount of marijuana a user consumes. Each case is different, but an average marijuana user some who uses two joints a week can often qualify for standard term life insurance (or other insurance types such as whole life insurance or universal life insurance) with non-smoker rates. Excessive marijuana users could be charged a higher premium since they are deemed to be riskier to insure.
Typically, it would be two joints per week. If you consume more than 2 joints per week, most companies will consider you a non-smoker but you may be rated (i.e. charged an extra premium due to the deemed extra risk of excessive marijuana use)
In many cases you might be not able to get standard life insurance rates but you can still get no medical life insurance that does not involve any medical tests. It is important though that in this case your premiums will be higher and your maximum coverage will be more limited than traditional fully underwritten life insurance policies
Expert tip from Nadine Allain, Chief Underwriter, Assumption Life
“The quantity and frequency of marijuana used will be taken into consideration on certain products when applying with a life insurance company. However, if you are a marijuana user that does not use nicotine or tobacco, then you should look for a company that will offer non-smoker rates. Even if you are offered adjusted premiums for the quantity/frequency of marijuana used, you will be able to get a lower premium if you choose a company that will offer non-smoker rates. Assumption Life will offer non-smoker rates for all marijuana users if there is no consumption of nicotine/tobacco.
If you are a daily marijuana user, expect a higher premium, however, if you are not a daily user, look for a company that may offer standard premiums or that has a simplified issue product with a quantity specific question on marijuana consumption.
Example: At Assumption life, on our simplified issue products, we have a marijuana question that asks the following: In the past three (3) years, have you: Used any prescribed or non-prescribed marijuana products more than 6 times per week? If the answer is “no”, that you would qualify for this product based on marijuana consumption. Of note that all the other questions on the specific simplified issue product have to be answered “no”.
More from Nadine Allain
Typically, it would be the equivalent of two joints per week (same as smoking).
Expert tip from Ralph D’lorio, Independent Insurance and Financial Advisor
“For a client, it is very important to know that the amount and frequency consumed will have a direct impact on their qualification. Both variables will have a direct impact on the insurance rate. It is therefore important to discuss the details with their advisor. The advisor will then be capable of identifying the adequate insurance provider as many have different qualification criteria. This minimal preparation process will allow the client to save time as well as help the advisor manage expectations and avoid any disappointments.”
More from Ralph D’lorio
If you are applying for the standard life insurance policy which means better rates and large coverages, insurers often require you to complete a urine and/or blood test. That allows them to help determine if you provided truthful information about your marijuana habits.
You can also go the no medical life insurance route. You will not have to complete a medical and you will be asked less questions. No Medical policies can be broken down into two types: Simplified Issue have no medical tests and a short series of health questions and Guaranteed Issue Insurance policies (have no medical tests and a no health questions) They do not offer the same level of coverage though as a standard life insurance. No Medical, Simplified Issue policies now offer higher face amounts than in the past and are often capped at $200,000 to $500,000 of coverage. No Medical, Guaranteed Issue policies usually offer Face Amounts in $25,000 to $50,000 range.
It is going without saying that these policies are more expensive (in terms of the same coverage) than standard life insurance policies and can be a subject to a “no-benefits” period, e.g. 2 years during which no claim will be paid, should something happen to you.
Here are some typical questions you can expect to see on Marijuana usage.
1. Have you ever used any drug(s)? If yes, please indicate which of the following applies to you
2. Please provide following data as related to the previous question:
a) Type(s), Quantity, Frequency, Date first used, Date last used
b) If you have answered yes to marijuana usage, please specify
3. Have you ever consulted a doctor or received treatment because of any drug use?
Yes/ No (If yes, indicate the dates and names of physicians, hospitals or treatment centers involved.)
4. Have you ever lost your job, been charged with impaired driving or been arrested due to the influence of alcohol or drug(s)?
Yes / No (If yes, please give details)
1. Are you using or have you ever used any of the following, other than prescribed and supervised by a physician?
Yes/No
2. For all drug(s) used please provide full details (includes type, usual quantity, frequency of use, dates used: from – to)
3. Have you ever consulted a doctor, been recommended for or received treatment or counselling for drug abuse?
Yes/No (If Yes, please provide names and addresses of doctors, hospitals, and institutions consulted, with dates in each instance)
4. Have you ever been hospitalized ore treated for a drug overdose?
Yes/No (If Yes, please provide dates and details)
5. Have you ever suffered any medical condition or impairment related to your drug usage, e.g. hepatitis, HIV, mental health disorder, etc.?
Yes/No (If Yes, please provide dates and details)
6. Are you / have you ever been a member of Alcoholics Anonymous, Narcotics Anonymous or a similar association?
Yes/No (If Yes, please provide full details including dates of each occurrence)
7. Have you ever been arrested or convicted for any drug or alcohol related offence, including driving under influence, reckless driving, or ever had your driver’s license suspended or been required to attend drug or alcohol awareness programs ordered by the court?
Yes/No (If Yes, please provide full details including dates of each occurrence)
8. Have your job duties been affected or restricted in any way or have you missed any time from work or school because of your drug use?
Yes/No (If Yes, please provide dates and details)
Expert tip from David Hutchison, Regional Sales Manager, Equitable Life
“Life insurance has certainly mellowed out when it comes to the use of marijuana. It wasn’t that long ago when clients who declared using marijuana more than a couple of times per week were declined but with time, it’s no longer as “high” on its restricted list. I think one of the keys for advisors is education when it comes to discussing this with your clients. Letting them know that by declaring that they use marijuana at all or even multiple times per week is no longer a stigma when it comes to underwriting with a lot of traditional underwriting carriers allowing up to 3 or 4 times per week while approving at standard with non-smoker rates. Even clients who use every day can still qualify for coverage, sometimes with a simple low substandard rating. I was given intel from underwriting colleagues that it’s more about the frequency than anything else as someone using regularly may be doing so address other issues that could be concerns from an underwriting perspective such as chronic pain, high stress or other ailments. If advisors can get the word out about how marijuana is viewed when applying for life insurance, I do believe that it will squash a lot of the misconceptions that potential clients may have.”
With the decriminalization of marijuana in Canada a few years back, two major life insurance companies, Sun Life and BMO Insurance, decided to treat cannabis users as non-smokers. This decision reversed a long-standing policy and offered many marijuana users far lower premiums as researches showed that marijuana use does not have the same health implications as tobacco.
Other companies quickly followed suit and now virtually every insurer offers non-smoker rates to infrequent marijuana users.
Insures may offer more detailed questions as part of their application and may change their protocol in terms of how much coverage they allow.
You could apply with another traditional fully underwritten carrier as different insurance companies have different protocols and sometimes have different reinsurers who they share the risk with. Our life insurance specialists can help you to get traditional life insurance.
As mentioned above you can also go with simplified Issue life insurance policies. These policies have no medical tests and a series of health questions) or guaranteed issue insurance policies which have no medical tests and a no health questions. These no medical life insurance policies have lower face amounts (i.e. coverage) and may have a 2-year-waiting period on the death benefit (i.e. no claim is possible within the first two years).
