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Life Insurance for Marijuana Users
Certain marijuana friendly top rated best life insurance companies will offer up to preferred plus rates. Other companies will decline you outright. You need to apply with the right company from the start or you could be setting yourself up for failure.
The following article details out the keys to getting life insurance for marijuana users in 2016. Continue reading or save yourself the time and just give us a call to see what we can do for you.
Life Insurance Approval with Recreational Marijuana Use or Prescription Marijuana Use
Can you get life insurance if you use marijuana? The quick answer is, YES, life insurance is available for marijuana users with or without a prescription. In other words, recreational marijuana users can obtain life insurance without having to hide their usage. Occasional marijuana users, even recreational pot smokers, or those who smoke a joint, or hit the occasional bong, can qualify at a preferred rate class with the right companies.
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In the following article we will attempt to point out all the potential roadblocks that a marijuana user buying life insurance will face. We realize that a around 12% of the population has smoked marijuana, so there are a lot of you out there. However, you do not need to go it alone. Our agents are skilled at placing our clients that use cannabis with the most appropriate company based on each carriers unique underwriting guidelines.
What is the key to getting a preferred rate class when using marijuana?
The key to obtaining the cheapest life insurance is knowing which marijuana friendly life insurance company to choose. That might ring painfully true to those who have already been declined for life insurance due to marijuana use. The key is having options. We work with many of the best life insurance companies ranked for each companies specific niche met.
We have found that the following companies tend to be the most marijuana friendly:
- American General
- Minnesota Life
- United of Omaha
- Voya ING
But one should be aware that, just because one company is more lenient for marijuana use does not mean that is the company to apply with.
Many of these companies will each have their own rules and regulations when it comes to determining who they "feel" will be an acceptable risk. Which means that the results that you'll get on your application can vary greatly depending on if you're a:
- Daily user vs an occasional user.
- Recreational vs prescribed user.
- And how you choose to use your marijuana, edible vs smoke/vape.
Your overall health and lifestyle will ultimately determine who the right company is for you. Therefore, choosing the right agency (think TermLife2Go) that has access to all these companies and more is the only way to truly "shop" for high risk life insurance.
We recently had a client who smoked weed twice a week apply with one of the more liberal marijuana underwriting companies. This same client had recently been approved with a competitor at a Table B smoker rate. The Company we placed him with offered a preferred rate class. The difference in premium payment $332 down to $86 a month, or a savings of $2,950 a year!
Disclaimer: Past results are not guarantees of future success.
Guide to Obtaining the Best Policy for Marijuana Users
Step 1: Disclose Your Usage to Your Agent
The first step is being straightforward with your life insurance agent and letting them know you do use marijuana.
A life insurance drug test does check for marijuana or THC. The last thing you want is to not disclose your marijuana use and pop positive on a life insurance medical exam.
The life insurance urine test will detect marijuana, in addition to the presence of other drugs.
Not divulging your use could jeopardize your chances of getting the best rate class in addition to putting the life insurance company on alert that you may have not disclosed other important information.
Step 2: Disclose How Often You Use
From there, you will need to determine how often you partake of marijuana or cannabis to know what rate class you can expect to receive from the various life insurance carriers who underwrite marijuana users.
Unfortunately, life insurance companies do not currently differentiate between smoking marijuana (think joint, bong, spliff, blunt, gravity bong, etc...) using a varporizer or ingesting marijuana (think tinctures, brownies, cookies, frosting, etc...).
Hopefully in the near future marijuana life insurance companies will begin to rate various users differently depending on how they partake of marijuana.
Step 3: Disclose Your Reason for Using Marijuana
A carrier will want to know if you are being prescribed the drug. The main factor to consider for those clients looking for life insurance with prescriptions for medical marijuana will be the underlying reason for the prescription.
Obviously, there is a big difference between taking medical marijuana for glaucoma compared to taking medical marijuana for cancer.
In summary, the following questions will need to be answered in order for us to place you with the most suitable marijuana friendly life insurance company:
- Is your marijuana use for recreational or medicinal purposes?
- If medicinal, what is the underlying health condition and severity of the condition being treated?
- How often do you use marijuana?
- What is your method of use, i.e. smoked, ingested, inhaled, etc…
Marijuana Life Insurance Rate Classes
One of the most frequently asked questions we get is how does marijuana affect life insurance rates. If you only use marijuana a couple times a year (2 times) than you can qualify at a preferred best rate class.
Currently, the companies offering a preferred best rate class are very strict about that 2 times a year rule. Since life insurance companies test for THC, if it shows up in your urine you will not qualify for this rate class.
And what about those who are not so healthy? For example, clients looking for life insurance but are diabetic. There have actually been studies showing marijuana use can benefit people with diabetes. If you are diabetic, you use marijuana, and you are looking for life insurance, give us a call today to see what we can do for you.
If you are an occasional user (not defined) you can qualify at a preferred rate class as long as your urine comes back negative for traces of THC. The life insurance carrier figures that if your urine shows the presence of THC than you are not an occasional user. Typical estimates for how long marijuana can be detected are around 13 days, but there are reports of some people having came back positive for marijuana as far out as 90 days, so be careful!
If you use marijuana only twice a month then you can receive a standard plus rate class. You will need to list your use on the application because life insurance applications ask about drug use, i.e. marijuana. And as mentioned above, life insurance companies do test for marijuana.
If you use marijuana once a week you can still receive a standard rate class. However, if you use daily, then chances are you will receive a tobacco rate class even if you do not smoke marijuana but only use a vaporizer or ingest it.
We had a client admit to marijuana use on his life insurance application. However, he failed to mention it in our initial interview. As a result, the company we placed him with came back at a tobacco rate class. But when we discovered that he only used once in the last year we placed him with another company that had more liberal guidelines for marijuana use. The new company offered him a preferred rate class. There was a difference in premium of more than 500% for a preferred rate class compared to a tobacco rate he was offered.
Now most companies will simply try and get you to take the original policy and tell you to try again in a year once the agent has made his or her commission. However, that is not how we do things at TermLife2Go. We guide our clients throughout the process with the goal of finding the best company at the best price.
If I Admit Drug Use Can I Be Prosecuted?
Life insurance companies are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA rules and regulations prevent the life insurance companies from divulging your information. Further, life insurance companies want clients to be honest so setting a precedent of telling on their clients would make business dry up fast. Therefore, you can sleep easy knowing your personal drug use history will go no further than the eyes of the life insurance carrier underwriter.
The landscape for marijuana and life insurance in the United States is changing. While many states still consider the sale and cultivation a felony, several states have legalized the use of recreational marijuana: California (November 8, 2016), Massachusetts (November 8, 2016), Nevada (November 8, 2016), Colorado (January 1, 2014), Washington (July 7, 2014), Alaska (November 4, 2014) and Oregon (October 1, 2015) along with the District of Colombia (February 26, 2015).
And the following states allow Marijuana use for medicinal purposes: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington. source
With 30 states and D.C. legalizing medical marijuana it is not a stretch to believe that the current restrictions on obtaining life insurance for marijuana users will continue to be loosened. It is hard to imagine that the life insurance underwriting criteria for marijuana users will not change significantly as more and more states adopt marijuana friendly laws. As new companies come on the scene and as the current crop of companies loosen their standards, TermLife2Go will be right there offering the cutting edge life insurance products for marijuana users.
An alternative to admitting drug use would be to consider lying on the life insurance application. However, lying on a life insurance application is fraud. It is better to just admit you are looking for life insurance with a pre -existing condition. Because if you commit fraud on a life insurance application, and the life insurance carrier finds out, the carrier will not pay the death benefit. That is a high price to pay (no pun intended) for not being straightforward with a life insurance company about your marijuana use.
Another alternative would be to stop using marijuana before applying for life insurance. If you have only used marijuana a couple times (no more than 2) in the last year then you may qualify for a preferred best rate class.
Once you have a life insurance policy in place you may do what you want. The life insurance policy is based on who you were when you took out the policy. The life insurance is not affected by any dangerous hobbies that you engage in, any health problems that arise or any drug use you partake in AFTER the life insurance policy is put in place.
Therefore, if you use marijuana after you get a life insurance policy you are in the clear. Just know that a life insurance company will investigate the past history of a client to determine if the client was truly being straightforward and honest on his or her life insurance application.
Thank you for reading our article, Recreational Marijuana Use or Prescription Marijuana Use and Life Insurance. Please leave any comments or questions below.
Are you ready to take a look at some actual rate quotes? If so, just visit our page Life Insurance Quotes where you’ll be able to compare different life insurance companies against one another as well as be able to choose between no medical exam policies and traditional (exam required) life insurance policies.
And since we still have your attention...
It’s fair to say that most people who decide to purchase a life insurance policy do so that they can protect their loved one’s financial future in the event of their death.
But what happens if you get sick but don’t die?
Is your family’s financial future still protected? Probably not. Which is why we would encourage you to also take a look at the following articles which will discuss some other “types” of life insurance policies that can not only protect your family’s financial future, they could also significantly help our your own as well.