Marijuana users have a hard time getting access to life insurance, except for those who refuse to state this on their application forms. The insurance industry has a set of laws they abide by, and for now, the prohibition of marijuana on a federal level has caused a sort of confusion in the industry. Companies now have to wade through a thick mud of laws before they can grant insurance coverages.
The sector of the insurance industry most affected by this is the life insurance sector.
Unlike other sectors like the car, rental and business-related insurances, life insurance companies have the right to ask applicants very personal questions that relate to their health and behavioural status. Most of these companies base their life insurance coverages on whether or not a person uses cannabis.
In the United States of America, life insurance is one of the most important forms of insurance anyone can have. It is a good foundation for having a solid and secured financial plan in the country.
The life insurance sector is finally adapting to the individual marijuana laws being approved by states in the US. Right now, 29 states and the Columbia District have legalized the medical use of cannabis.
Marijuana users are now closer to having a hitch-free process of securing their life insurance slips without the fear of joining the stereotype.
Classification of Marijuana
According to federal laws, marijuana is classified as a Schedule I substance. This means it is illegal.
In the past, this was enough grounds for a marijuana user to be denied life insurance coverage by all the insurance companies in the country.
The Senate is currently taking steps to approve cannabis laws in the country, however, this may take a while. As soon as this is done, cannabis will be rescheduled and will no longer be classified as a Schedule I drug. Meaning, all life insurance companies will be expected to provide insurance to all, without special treatments to marijuana users.
The legalization of marijuana will also allow Insurance companies to have a crystal-clear understanding of how cannabis products affect mortality.
Good News, Yes you can get life insurance
This depends on the location of the insurance company and the frequency at which you use cannabis.
Location of the insurance company
If you reside in a state that has not legally approved the use of marijuana, then there’s very little hope of you getting life insurance coverage. If perchance a company agrees to grant coverage, it might be at an exorbitant service charge per month.
Insurance companies can provide life insurance when there are state laws to hide under.
Companies situated in cannabis-friendly states only have to bother with the frequency of use and not the status of an applicant in partaking of cannabis substances.
Frequency of use
Life insurers work differently. They also assess risk differently.
All life insurers consider a person’s age, weight, gender, previous health record and family health history.
Some choose to factor in the applicant’s hobbies to measure the risks to life.
The drug use history comes into play for the insurers to determine how averse a person’s health is to health conditions and diseases. Your history of marijuana, as well as other drugs, are factored in.
Marijuana users are probed to discover the number of times the drug is consumed daily, and the reason for the use. Those that are using marijuana for medical-related reasons have to give in detail the condition being treated.
One of such life insurance companies includes Quotacy. At Quotacy, the insurer will always ask for the condition you’re treating and sometimes a doctor’s documentation may be required.
Different companies have laid down standards that can not be worked around in any way. You only have to go for the agents that suit your circumstances best.
Marijuana users now choose to work with life insurance brokers that are experienced and know their way around the marijuana industry. These brokers are willing to provide life insurance coverage at affordable prices.
Life insurance coverage for marijuana users
The process involves an interactive session where you’ll be asked to truthfully answer questions about your lifestyle. Among these questions include questions on your use of prohibited drugs. To guarantee the truthfulness of your replies, some life insurers companies usually conduct urine or blood tests to test for the presence of these drugs.
The brand director of an Insurance company known as Haven Life Insurance in an email stated that marijuana usage always turns up in the blood tests carried out. This is one of the reasons why it is important to be very honest when replying to drug use related questions. Lying before the test may ruin your chances of getting covered by that company. Oftentimes it results in an outright refusal of your life insurance coverage.
There have been cases where the life insurer refused to pay out death benefits of covered clients to their families after discovering the deceased lied on their application.
Life insurance rates for marijuana users
As a marijuana user applying for life insurance coverages, there are three ways it could go.
You Will Be Declined Automatically
The insurance company can choose to give the reasons for this decline or not.
You will be classified as a tobacco smoker if approved
This means that each month you have to pay the same rate being paid by tobacco users. These rates are significantly higher than the normal rates paid by healthy applicants that do not consume cigarettes or tobacco products.
You’re approved and issued non-tobacco rates
Here, the insurers charge you depending on how often you indulge in using marijuana. The lesser your usage frequency is, the lesser the rates applied. Very frequent use means higher amounts of money to be paid each month.
There You Have It!
As a marijuana user applying for life insurance, the most important thing is to always disclose your use of the drug.
Be vocal about your use to prevent unfavourable situations in the future.
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