Does smoking marijuana make life insurance more expensive?

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Marijuana users need to understand how their life insurance premiums will be affected.


Key points

  • Marijuana use has become legal in more states, but it could still affect life insurance premiums.
  • Some insurers charge higher rates or deny coverage if you smoke marijuana.

In the United States, an increasing number of places are legalizing the use of marijuana. As a result, millions of people openly smoke or use cannabis, some for health reasons and others for recreational purposes.

While there is some evidence that marijuana has health benefits, at least when consumed in certain forms, that doesn’t necessarily mean life insurance companies like it when applicants smoke it. In fact, marijuana use can impair a person’s ability to obtain life insurance or can make premiums more expensive.

Here’s what marijuana users need to know when shopping for coverage.

How Marijuana Use Affects Life Insurance Prices

When a person applies for life insurance, the company asks a number of detailed health questions. In many cases, the requests ask if the person is using drugs, including marijuana.

Applicants should be honest about this. Insurers usually also require a medical examination, which could reveal marijuana use even if the claimant did not disclose it in advance. And even if the insurer doesn’t find out right away, lying about cannabis use could have harmful consequences later on, including potential cancellation of coverage if the insurer finds out the truth.

When marijuana use is disclosed, many insurers believe it increases the risk of having to pay a claim. Insurers price policies based on risk, and if they consider smoking marijuana to be a factor that increases the risk of death during the term of coverage, they will charge higher premiums.

Some insurers actually find the risk to be so great that they refuse to cover those who smoke cannabis products. This could mean that it is harder to find a policy, and available policies cost more, due to the added dangers that insurance companies believe marijuana use presents.

How to Get the Cheapest Coverage as a Marijuana User

Whenever someone purchases life insurance and has risk factors that increase the cost of coverage, it becomes especially important to shop carefully among many different insurers.

Different insurance companies have different risk profiles and treat cannabis use differently when determining the likelihood of having to pay a claim. As a result, there can be wide variations in what cover insurers will make available and the price they charge.

One insurer, for example, may deny coverage entirely to people who smoke marijuana, while others will barely increase premiums compared to a non-smoker who has never tried cannabis. Only by carefully researching coverage and getting quotes from multiple insurance companies can cannabis consumers find the best and most affordable policy for them.

When shopping, cannabis consumers should disclose the fact that they smoke marijuana in advance in order to get the most accurate prices. Choosing a term life insurance policy, rather than a whole life insurance policy, can also help keep coverage affordable, as term life insurance is much cheaper than whole life insurance plans. . Although the cover is only in effect for a limited period and no death benefit is paid unless the policyholder dies during the term of the cover, this is generally sufficient protection. for most people because lifetime coverage is rarely needed.

By shopping around and being honest up front, cannabis users can find a life insurance policy that fits their budget and provides the protection their families deserve – even if their marijuana use means they pay a little more. than their non-smoking counterparts. .

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