How does marijuana affect life and disability insurance premium rates?
Jan 26, 2015
Jamie Fleischner

Jamie Fleischner

26 Jan, 2015

As marijuana usage becomes more prevalent, how does it affect premium rates for life and disability insurance.

While companies don’t check for traces of use in their paramedical exams (blood and urine tests), they do ask about usage. This typically requires the applicant to complete a drug questionnaire.

If an applicant is using marijuana, even occasionally, the companies will most likely offer smoker rates. This can significantly increase rates.

For example, a healthy male, age 30 with no health problems will pay $425/year for super preferred, nonsmoker rates. Assuming there are no other health issues but the applicant is a marijuana user, the best available smoker rates are $1535/year. This is close to 4x the nonsmoker rate. If there are ANY other health issues, they will offer standard smoker rates which would increase the premium to $2845/year.

For disability insurance, the rates increase as well. Let’s assume the same male, age 30, internal medicine physician looking for $10,000/month benefit (assuming all of the riders). The nonsmoker rates would be $336/month. Changing the policy to a smoker rate would increase the premium to $420/month.

For more information about how marijuana use impacts life and disability insurance premiums, contact Set for Life Insurance today!

Related Posts

The Importance of Life Insurance-Firsthand

The Importance of Life Insurance-Firsthand

Life Insurance I talk to people every day about life insurance. It is always a hypothetical conversation about how much life insurance  you or your loved one would need if something happened. Most of the time, people purchase their life insurance, tuck it away and...

When Can You Drop Your Term Life Insurance?

When Can You Drop Your Term Life Insurance?

The decision to drop or cancel your term life insurance policy depends on your individual financial and insurance needs. Here are some common scenarios when you might consider dropping your term life insurance: The term has expired: Term life insurance policies have a...

We're here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we'll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we're happy to walk you through it! If you're ready to get set, reach out for a quote today!