Whether you use marijuana for fun or medical reasons, there are life insurance companies that will work with you.
This guide breaks down exactly how recreational and medical marijuana use affects your life insurance application—and what to do to get approved.
How Marijuana Affects Life Insurance Underwriting
Marijuana affects underwriting in two big ways:
- Medical marijuana is evaluated based on the underlying medical condition being treated.
- Recreational marijuana is assessed based on frequency, format (smoke, vape), and lab results.
Life insurance underwriting for marijuana use has greatly improved, and there’s no need to hide it on your application.
Life Insurance for Medical Marijuana
If marijuana is prescribed or used for a diagnosed condition, life insurers base their offer on that condition, not the marijuana itself.
Medical marijuana red flags:
- Vaping: Dry herb vaping is okay with some carriers, while vape pens may trigger tobacco rates.
- Non-Disclosure: If you hide medical marijuana use and get caught, underwriting will decline you.
Medical marijuana is legal in 37 states, four territories, and Washington, D.C., and life insurance companies have adapted. There’s no need to hide it from the right company.
For example, Prudential stated:
“When prescribed by, or taken under the direction of, a physician, any rating assessed will generally be based on the underlying condition, not the actual use of the medicinal marijuana.”
All types of life insurance, including term, universal life, and whole life insurance policies, are available.
A positive THC level for medical marijuana use is acceptable with life insurance companies.
How does medical marijuana underwriting work?
When you complete your application and paramed exam, you’ll be asked about your prescriptions and medical conditions.
If you have a medical marijuana card, indicate that with your application. Life insurers may ask for a copy of your marijuana card or request medical records related to the prescription.
The underwriter will also base your price on whatever medical condition you have.
Life Insurance for Recreational Marijuana Users
Using marijuana for fun? You’ve got options.
Key to approval:
- Be honest about how often you use it.
- Stop using long enough to provide a negative test result.
- Disclose recreational use on the application.
Recreational marijuana is legal in 17 states, Washington D.C., and Guam. The good news? Even if you use marijuana in a state not approved recreationally, it doesn’t matter.
The best companies don’t care that you use marijuana, but you have to have a negative lab result to qualify for the best rate classes.
Let us know if you use any of these tobacco/nicotine products, as it will impact which companies are best for your situation:
- Cigar Smoker
- Tobacco Chewer (includes Zyn)
- Pipe Tobacco
- Cigarette Smoker
If you are considering the Costco Life or AICPA life insurance programs, do not, as you will be disappointed with the outcome.
Frequency Matters – How Often Do You Use Marijuana?
Your frequency of marijuana use directly affects your insurance rates. Here’s how it breaks down:
- Occasional Users (a few times per year) – The best non-tobacco life insurance rates are available.
- Monthly Users (Up to 8x per month) – Preferred Plus rates available with Corebridge Financial.
- Weekly Users – Preferred and Standard rates available with a negative THC test.
- Daily Users – Most insurers want negative labs.
The underwriting rules become more involved for daily users. Companies will request a comprehensive drug history questionnaire, and most offers you receive will include a table rating that adds 50-100% to the standard rate.
We’ll tell you exactly what to expect with each life insurance company’s quotes.
How Long THC Stays in Your System (And Why It Matters)
The following are general guidelines, as each person is affected by their frequency of use, THC levels in the weed you buy, your body weight, and fat % (THC stores in fat), and how you consume it.
Detection times for a urine test:
| Use Frequency | Detection Window |
|---|---|
| Single Use | 3 – 4 days |
| Moderate Use (4x per week) | 5 – 7 days |
| Daily Use | 10 – 15 days |
| Heavy Chronic Use | 30+ days |
Plan accordingly to provide a negative lab test result if required by your insurer.
Why You Should Never Lie on an Application
Here’s what can happen if you lie:
- Underwriting Denial – Companies will decline you if they learn about your marijuana use.
- Contested Policy – Companies have 2 years after you buy the policy to contest it.
- Insurance Fraud – You may be committing a crime (although prosecution is not likely)
- Claim Denial – Your beneficiary may have to fight the insurance company for money.
It’s not worth it, especially since you can get affordable life insurance when you disclose marijuana use. Please note that if your application is declined, the Medical Information Bureau will maintain records of your prior application history in their files.
Working in the Marijuana Industry? Read This
Life insurance is more challenging if you’re employed in the marijuana industry, including:
- Growers, cultivators, and trimmers
- Retail workers and dispensary managers
- Lab technicians and extraction specialists
Federal laws restrict banks and insurers from working directly with marijuana-derived funds, making traditional life insurance challenging. However, alternative coverage is available:
- Accidental Death Insurance: Coverage up to 10x your annual income.
- Specialized Business Coverage: Policies (up to $25 million) specifically for marijuana business owners are available through a Lloyd’s of London program.
- Final Expense Insurance: You may qualify for final expense insurance, but will be limited to $25k
The Lloyd’s policy is a very basic policy with no life insurance riders or living benefits, but it’s a good option when nothing else is available.
The good news is that their policy can be used for SBA loans, key person, and foreign nationals.
As legislation evolves, we anticipate that more traditional insurance options will become available.
Final Words
Getting life insurance if you use marijuana is simple with the right approach:
- Be truthful about your marijuana use.
- Understand the impact of frequency and method of use.
- Choose a marijuana-friendly life insurance company.
Ready to get started? Get a free quote today, and we’ll help you secure affordable, marijuana-friendly life insurance. If you’re new to life insurance, check out our 101 guide.
Sources
[1] National Conference of State Legislatures – https://www.ncsl.org/research/health/state-medical-marijuana-laws.aspx – reviewed 5-7-2022
[2] Centers for Disease Control and Prevention – https://www.cdc.gov/marijuana/index.htm – reviewed 5-7-2022
[3] U.S. News & World Report – https://www.usnews.com/news/best-states/articles/where-is-marijuana-legal-a-guide-to-marijuana-legalization – reviewed 5-7-2022
