Earlier this summer, Prime Minister Justin Trudeau announced that Canadians will legally be allowed to consume marijuana starting on October 17th, 2018. Those consuming marijuana recreationally will not face criminal penalties (provided they are following reasonable precautions, i.e., not consuming whilst operating a motor vehicle). Many individuals have been very vocal about their stance on the legalization of marijuana, viewing it mainly from a health and safety stance. There are many who utilize marijuana recreationally and/or medically who support the notion to legalize and those who see negative health ramification with its use. Insurance companies hold various positions in terms of where marijuana falls in relevance to the health of an individual. With that being said, many are reshaping their policies due to the legalization that is fast approaching.
How does the legalization of marijuana impact life insurance?
I receive many questions from brokers and clients regarding the upcoming legalization of marijuana, with most of them concerned about how usage will impact life insurance applications. Most life insurance companies have already prepared for this, hence, a lot of them have their own underwriting protocols in place. Each company approaches marijuana usage differently when it comes to the correlation to policies. We surveyed a lot of different companies and the most common stance is that an individual is allowed up to 2 joints per week or the equivalent in edibles in order to qualify for non-smoker rates.
If an individual is consuming more that, different companies have different limitations. some companies have more liberal rules, but on average, if you are consuming more than 2 joints a week or the equivalent in edibles, there is a good chance you will either be charged a smoker rate or an extra premium.
Working with a broker who has access to all the different companies and is able to confirm all the different underwriting protocols is imperative when it comes to getting the best policy for your lifestyle. If you are unsure, it is important to get all your answers in writing.
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