When it comes to marijuana and life insurance, many applicants, including cannabis users, wonder whether using cannabis will impact their insurability and premium rates. Well, it all depends on how frequently you use marijuana and whether it is medicinal or recreational, which can result in higher life insurance quotes and premium rates.

If you are an occasional marijuana user — the definition of which can vary depending on the insurer — and use it for personal enjoyment, you are likely to qualify for life insurance easily and even receive preferred rates. However, frequent marijuana users or those who consume marijuana for health benefits may have to pay higher premiums.

Before and After Legalization

Bill C-45 legalized access to recreational cannabis in Canada in October 2018. Before the C-45 bill, many life insurance companies classified all marijuana users as tobacco users, regardless of whether it was for medicinal or recreational marijuana use, and hence offered them the same rates as smokers. This, however, is no longer the case. Today, several top Canadian providers no longer charge marijuana users smoker rates unless they also consume tobacco.

Some life insurance providers classify applicants based on the frequency and the purpose that their use of marijuana. For instance, applicants who house recreational marijuana fewer than three times a week can receive nonsmoker rates. Those with a medicinal marijuana prescription typically receive rates matching the severity of the health condition they are treating.

Things that life insurance providers consider if you use marijuana

When you apply for life insurance, the life insurance industry will ask you questions about your cannabis use. You will likely undergo a medical test, and the underwriter will look at the results to check whether you have provided accurate information.

Life insurance companies will consider the following things regarding your cannabis use:

• How you use marijuana and the form of cannabis consumption (whether you smoke or ingest it)
• How often do you use marijuana
• Whether you use it for medicinal or recreational purposes

In addition to these details, insurance carriers will factor in your health and lifestyle while assigning you a health classification such as Preferred Plus, Preferred, Standard, or Sub-standard. The better your health rating, the lower your premium rate. These classifications can affect your eligibility for standard life insurance policies and the rates you are offered.

How you use marijuana

Marijuana can be chewed, smoked, or sipped, and the form of cannabis consumption can impact your health classification and premium rate. Underwriters may look at how you use marijuana while assigning you a health classification and determining your premium rate.

Some insurers rate all those who use marijuana as tobacco users, regardless of whether they inhale or ingest cannabis. Consequently, they offer them only smoking rates, which can be two to five times higher than non-smoking rates. Other insurance carriers classify individuals who consume marijuana edibles or use cannabis oils as low-risk.

How often do you use marijuana?

Insurance carriers will want to know how frequently you consume marijuana in a week, as the frequency of cannabis consumption can impact your rates. Some providers rate individuals who use marijuana four times a week or fewer as non-smokers, which may lead to lower rates. If you consume more frequently, you are likely to be classified as a smoker, which, in turn, will increase your life insurance rate.

Your purpose for using marijuana

Recreational marijuana user consumes it for enjoyment rather than for health benefits, and the purpose of cannabis consumption can impact your rates. Many life insurance companies look at the recreational use of cannabis more favorably than its medicinal use and can offer a marijuana user non-smoking rates.

If you consume medicinal marijuana, insurance providers will want to know the health condition for which you are using it. They will factor in this information while calculating your risk. For instance, if you use marijuana for relieving back pain, that is not likely to impact your insurability or premium rate. But if you are using it to treat epilepsy and seizures, it will be looked at differently.

Keep in mind that life insurance companies will pair your marijuana use with other factors, like your health, lifestyle, and medical history, to calculate your risk. So, even if you use cannabis for recreational purposes, you may still be classified as high-risk, especially if you use tobacco or have an underlying health condition, such as an anxiety disorder or a lung disease.

What do you need to know to get life insurance as a marijuana user?

If you use marijuana, some important points to keep in mind when applying for life insurance are as follows, including the frequency and form of cannabis consumption:

As mentioned earlier, honesty is crucial when applying for life insurance as a marijuana user, including being transparent about your cannabis consumption. Failing to disclose your marijuana use can lead to higher premiums or even policy cancellation. When applying for life insurance, be prepared to answer questions about your marijuana use, including frequency, methods, and purpose of use. This transparency will help you secure the best possible life insurance policy for your needs.

It is important to be truthful about your marijuana use on a life insurance application. Most life insurance policies involve a medical test. An insurance carrier will look at your urine and blood tests to check whether you are being honest about your drug use or not. Tetrahydrocannibal (THC) is the chemical that shows up in urine and blood for many days after marijuana use. Marijuana is detectable in the blood for 3 to 14 days and in the urine for 30 days, depending on the usage.

Besides your medical test results, life insurance companies will also likely check your medical records to determine whether you consume marijuana or not. So, even if you do not consume marijuana for 30 days or more before the paramedical exam, life insurers can still find out the truth. If you are caught lying on your application, consequences can be severe, like:

• Your life insurance application may be turned down
• The incident will be recorded in MIB — an insurance consumer reporting agency — and consequently, other life insurance companies will learn about it. This, in turn, will make it more difficult for you to get approval from other providers.
• If you were approved and passed away within the first two years of the policy issue date, the insurance carrier can reject the claim if it later finds out you lied on your application.

Marijuana users can receive lower rates

While marijuana and life insurance may not go well together in certain situations, the fact remains that cannabis consumption does not automatically disqualify you from preferred rates. Each insurer has different standards, but many are willing to offer lower rates to individuals who use marijuana for recreational purposes, provided they are in good health and do not consume it daily.

Individuals who use marijuana for health benefits may have to pay higher life insurance premiums

If you have a medicinal marijuana prescription, the insurance carrier will want to know the health condition you are treating and the frequency of cannabis consumption. If it is serious, you will likely receive higher premiums. Generally speaking, underwriters are more concerned with the underlying medical condition requiring marijuana use than the marijuana use itself.

How frequently you consume marijuana also impacts your premium rates. Heavy user is likely to receive much higher rates than someone who consumes marijuana occasionally. Additionally, the type of death benefit offered may vary based on the severity of the health condition being treated with marijuana.

Medical Marijuana and Life Insurance

Medical marijuana users may face different challenges when applying for life insurance. While some insurers may view medical marijuana use as a lower risk, others may consider it a higher risk due to the underlying medical condition. It’s essential to disclose your medical condition and marijuana use when applying for life insurance. Some life insurance companies may offer specialized policies for medical marijuana users, so it’s crucial to research and compare options. Being transparent about your medical marijuana use and the condition you are treating can help you find a policy that provides the coverage you need at a reasonable rate.

How does marijuana use affect your life insurance rates?

When a life insurance provider decides whether to approve you for a policy and how much premium to charge, they pay attention to the frequency and form of cannabis consumption. Occasional use may not impact your premium rate much, if at all. In contrast, regular use of marijuana may push up your rate considerably and even lead to higher life insurance rates or a denial of coverage.

In addition to the frequency of use of marijuana, some insurers may consider the form in which you consume it. Generally, edible cannabis products and cannabis oils are looked at much more favorably than smoking and vaping.

Lastly, insurance carriers may want to know whether you use marijuana for recreational or medicinal purposes. If it is the latter, the more severe the underlying health condition that you are treating, the higher your premium will be.

Conclusion

Marijuana and life insurance can, at times, be complicated, but the bottom line is that cannabis consumption does not automatically mean higher premiums or a denial of coverage. In most cases, you can get life insurance coverage if you use marijuana. You may get approved for a life insurance policy at preferred rates depending on your usage, overall health, and medical history. And if your marijuana usage makes you ineligible for a traditional policy, you can access life insurance by taking out a no-medical plan.

If you are concerned about how marijuana use will impact your insurability and premium rates, consider speaking to an insurance expert at Dundas Life. We will assess your situation and help you find a provider willing to offer you the desired level of coverage at the lowest possible price.

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Frequently Asked Questions

What if I am denied coverage due to marijuana use?

If a life insurance company turns down your application due to cannabis consumption, there is not much you can do about it. However, not all companies treat marijuana use the same way. So, consider applying to life insurance providers that are less strict about it. An experienced broker can help you identify such life insurance companies. If you cannot receive traditional coverage, no-medical life insurance is worth considering. Since it does not require a medical exam and sometimes does not even involve health questions, marijuana use, or any underlying health condition will not impact your insurability.

How does a life insurance company test marijuana usage?

As a part of their underwriting process, life insurers will ask you to take a medical exam from an insurer-approved physician. The paramedical exam involves collecting urine and blood samples and testing them for various chemicals, including THC, the main psychoactive compound in marijuana. THC is detectable in urine for up to 30 days and in the blood for up to three days since the last marijuana use. Apart from the results of your medical test, life insurance companies may also check your medical records to get a clear picture of your marijuana usage.

Does the use of cannabidiol (CBD) impact life insurance rates?

The use of CBD products, like oils and edibles, that do not contain THC is not likely to push up your premium rates. However, if you use CBD to treat a medical condition, the latter may affect your rates.

How much do marijuana users pay for life insurance coverage?

Your cost of insurance depends on many factors, such as how frequently you consume marijuana, in which form you use it, and for what purpose. Even if you use marijuana, you can still qualify for preferred rates if you occasionally consume it orally (for example, in the form of pot brownie or THC-infused lemonades and gums) for recreational purposes. If you smoke or vape marijuana, you are likely to receive higher life insurance premiums.