"Though it’s increasingly legal, marijuana can still raise red flags for life insurance companies. While some insurers don’t mind covering you if you use pot, others will charge you higher rates or deny your application outright." - Eric Goldschein, MarketWatch (originally in NerdWallet), January 25, 2021.
Currently, the medical use of marijuana is legal in 36 states and for recreational purposes in 15, as well as Washington D.C. About 22.2 million indicate they use it monthly.
But legalization and the mainstreaming of the substance can be almost irrelevant right now with how the insurance industry assesses its risk factors. If you already have a life insurance policy and use marijuana, you are already locked in. This doesn't have to concern you. At least not at the present time.
If you are applying for life insurance, then you will likely have to research how different insurance companies view that and what are their fees. This has become an additional factor they evaluate when making the decision to provide life insurance and at what price. The major others include health, occupation and hobbies. Sometimes a medical exam is required. During it, there could be a blood test which can pick up the presence of marijuana.
Some companies are not open to insuring anyone who uses marijuana, either for medical and/or recreational reasons, no matter how infrequently.
Others focus on why and how often. If the reason is medical, of course, they want to know more than that. The frequency of use is a core issue. If you are a daily user you probably will be rejected. Many companies classify usage as analogous to tobacco - that is, a negative for health. Because the substance has been illegal for so long there is not yet a lot of research on its impacts on human health.
MarketWatch provides the example of a 30-year-old man in excellent health applying for a $500,000 30-year term life insurance policy. If he never uses marijuana, the monthly rate is $30. If he does six times a week, the rate shoots up to $166.
In some circles there may be a kind of euphoria about legalization. However, the insurance industry, as do many other constituencies, still associates stigma to use. On a career path, it could throw shade on a professional brand.
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