Although more than 50 percent of states have taken a more liberal view on marijuana use and as a result have legalized marijuana use in some form, not every insurance company is marijuana friendly. Traditionally, life insurance companies are very conservative when it comes to underwriting since rates are always based on the level of risk they accept.
Marijuana users, whether medicinal or recreational, should target the companies who have indicated a willingness to take a more liberal view on the subject and have demonstrated a willingness to offer affordable rates. Although the following list of companies appears to be marijuana friendly, it’s important to note that underwriting guidelines remain fluid and can change frequently if a carrier experiences higher than expected losses.
The following list of life insurers are considered to be “marijuana friendly” and should be the first in line when shopping for life insurance. They are in no particular order so please pay close attentions to the descriptions provided.
MetLife appears to be competing for marijuana users by offering very low rates. The company, which is highly rated by A.M. Best, is willing to offer non-smoker rates for applicants who smoke marijuana four times a week or less. They are even willing to offer preferred rates for applicants that ingest edibles rather than smoke marijuana.
It’s important to note that the difference between non-smoker and smoker rates is substantial with smoker rates being more than 50 percent higher than non-smoker rates. The company is considered to be at the forefront of insurers who offer life insurance to marijuana users.
Prudential also takes an aggressive stance by allowing applicants who use marijuana less than four times per week get standard non-smoker rates. Agents also report that Prudential is a great carrier for medicinal users who are using marijuana to treat pain and unintentional weight loss. Prudential appears to be a go-to company for high-risk cases and should be contacted if your marijuana use is medically related.
United of Omaha, a Mutual of Omaha company also takes a more liberal view of marijuana use. This highly rated insurer is currently offering infrequent usage of once per week non-smoker rates. Although the insurance carrier does not offer preferred rates to marijuana users, they are still considered to be a great place to obtain affordable insurance rates when marijuana use is a factor.
As one of the top ten marijuana friendly life insurers, Principal allows marijuana use twice per month and still offers non-smoker ratings. Although this may appear to be too
restrictive for marijuana users, remember that most carriers will automatically assign smoker rates for individuals that smoke marijuana, even when they do not smoke cigarettes. For individuals who only use edibles, the company is willing to consider better rates on a case by case basis.
American General is another insurer who is highly rated and taking a more liberal stance on marijuana use. For occasional users who smoke only about three times per year, American General will typically offer their lowest rates. For those individuals that use marijuana a little more, like twice a month, the company is willing to offer standard rates as long as there is no tobacco usage and significant health issues.
It’s important to note that all of the companies listed above will require a medical exam that will include a blood and/or urine specimen. Only through fully underwritten insurance policies will the applicant be able to receive the lowest rates possible.
What about Companies that don’t require a Medical Exam?
Great question. There are many life insurers who will offer affordable life insurance without requiring a medical exam. These companies will still ask many medical questions on the application which generally include questions about marijuana and alcohol consumption, but they do not require the medical exam that includes urine and blood analysis for support. They will charge higher rates for insurance because without the policy being fully underwritten, the insurer is accepting a higher risk.
- American Amicable
American Amicable, rated “A” by A.M. Best, offers its Term Made Simple policy for individuals seeking life insurance without the hassle of a medical exam. They offer very competitive and affordable rates and will provide the same popular riders that fully underwritten policies provide. Although there are medical questions on the application, the company does not require a medical exam and blood and urine specimens.
- American National
American National Life Insurance Company is another company that should be considered when your preference is no-exam life insurance. American National’s Freedom Term product is affordably priced, available in face amounts up to $250,000, and can offer approvals in about 15 minutes.
Assurity Life Insurance enjoys an “A” rating from A.M Best and has been providing valuable life insurance policies to the public for over 123 years. Assurity’s NonMed Term 350 product is available to individuals between the ages of 18 and 65 with face amounts of up to $350,000. The NonMed Term 350 product is considered a simple issue product resulting in quick approvals and fast policy issuance.
- North American Company
North American’s LifeVue simplified Issue product is a term product that includes health and lifestyle questions but does not require the support of a medical exam or blood and urine tests. The product is considered to be one of the fastest online life insurance policies available.
Transamerica Life Insurance Company was founded in 1928 and has become one of the premier insurers in the marketplace. The company offers very affordable no-exam term insurance for up to $249,999 that can include a critical illness rider, chronic illness rider, and disability rider making it one of the few no-exam term products with living benefits.