cannabis life insurance canadaCannabis users in Canada navigating the complex world of life insurance now have expanded options, reflecting a significant shift in industry practices.

Since cannabis legalization in 2018, insurance companies have been adapting their policies to accommodate both recreational and medical marijuana users, recognizing cannabis use as a factor distinct from high-risk behaviours like tobacco smoking and how it differs from life insurance for smokers.

This development opens the door for cannabis consumers seeking life insurance, with provisions varying based on usage frequency and quantity. Occasional users may qualify for standard-term life insurance at non-smoker rates [1].

In contrast, daily users have avenues through no medical life insurance [2], albeit at slightly higher premiums [3] and potentially limited coverage [4].

Notably, some Canadian life insurance policies now extend non-smoker rates to cannabis users, including those who partake a few times per week, illustrating an industry-wide reassessment of cannabis's impact on life insurance premiums [1] and coverage.

This guide delves into the intricacies of cannabis life insurance and smoking marijuana, exploring how marijuana usage influences insurance premiums, compares life insurance options available for cannabis consumers, and offers critical tips for navigating the application process.

A spotlight on no medical life insurance highlights its suitability for cannabis users, emphasizing the benefits of such policies in offering competitive rates without the need for life insurance drug testing, which is common to traditional life applications.

This adjustment underscores a broader industry trend towards inclusivity and accommodation, reflecting both the legal landscape of cannabis in Canada and the evolving perceptions of risk associated with its use.

call todayCall Today!
Speak with one of our friendly and knowledgeable advisors.
Phone: 613-817-4822

Understanding Marijuana Life Insurance Policies for Cannabis Users

cannabis inaurance approvedIn the evolving landscape of cannabis insurance coverage in Canada, notable changes have been observed since the legalization of marijuana.

Initially, regular cannabis users faced challenges such as being declined for life insurance or being charged life insurance rates for smokers.

However, this has shifted significantly, with some Canadian insurers now offering non-smoker rates [5] to regular cannabis users, recognizing the difference in risk compared to tobacco use.

The application process for life insurance for cannabis users involves detailed assessments of marijuana usage, including the frequency, type, and amount of consumption.

Insurers have adapted their protocols, especially post-October 2018, to include more comprehensive questions to understand the risk profile of cannabis users better.

For instance, occasional users, consuming up to two joints per week [1], might qualify for standard term life insurance [1] with non-smoker rates.

In contrast, daily users are generally considered at a higher risk and may only be eligible for non-medical life insurance policies, which typically have higher premiums and limited coverage.

Furthermore, the distinction between recreational and medical marijuana use plays a crucial role in how policies are issued. Medical users who are prescribed marijuana for specific health conditions might be viewed differently from recreational users.

Insurers consider the type of medicinal products used and the underlying health conditions being treated. This differentiation is crucial as it influences the premiums and the terms of coverage offered to the insured.

Additionally, the advent of no medical life insurance offers a viable alternative for those seeking to avoid the traditional medical underwriting process. However, it often results in slightly higher premiums and reduced coverage.

call todayCall Today!
Speak with one of our friendly and knowledgeable advisors.
Phone: 613-817-4822

How Cannabis Use Affects Life Insurance Premiums

Frequency and Method of Cannabis Consumption

  1. Frequency of Use: Insurers significantly weigh the frequency of cannabis use when determining premiums. Occasional users, defined as those consuming less than two times per week [7], may receive non-smoker rates, while frequent users (more than four times per week) are often classified as smokers, which leads to higher premiums.
  2. Method of Consumption: How cannabis is consumed also impacts insurance classifications. For instance, daily users of edibles may be considered non-smokers by some insurers like the Canada Protection Plan. In contrast, those who prefer smoking or vaping cannabis and marijuana products are typically classified as smokers, affecting their premium rates.

UV Insurance offers non-smoker rates for Canadians who smoke and vape cannabis and weed products as long as they do not add tobacco to their joints, bongs or pipes.

Medical vs. Recreational Consumption

  • Medical Cannabis Users: Those prescribed cannabis for medical reasons might be assessed differently, focusing on the type of products used and the specific health conditions being treated. This can influence both the premiums and the terms of coverage offered.
  • Recreational Users: For recreational users, the frequency and amount of cannabis consumed are pivotal. Regular recreational use [4] can lead to higher premiums or exclusion from fully underwritten policies.

Insurance Provider Policies and No Medical Exam Options

  • Provider-Specific Policies: Each insurance provider has its guidelines for cannabis users. These might include considerations of the user's frequency of use, amount per session, and overall history with cannabis. Such factors determine whether an individual is classified as a smoker or non-smoker.
  • Benefits of No Medical Exam Life Insurance: No medical exam policies are particularly beneficial for cannabis users. These policies do not require traditional medical underwriting, which can be a hurdle for frequent users.
    Moreover, some Canadian companies offer non-smoker rates for cannabis users under these plans, making it a cost-effective option despite the typically higher premiums associated with no medical exam policies.

This detailed examination of how cannabis use affects life insurance premiums underscores the importance of understanding the specific policies of insurance providers and considering no medical exam life insurance as a viable option for frequent cannabis users.

Comparing Life Insurance Options for Cannabis Consumers

In the landscape of life insurance for cannabis consumers in Canada, it is crucial to compare available options to determine the best fit for individual needs and circumstances. The following points outline essential considerations:

No Medical & Simplified Issue Life Insurance Plans

no medical life insuranceNo medical and simplified issue life insurance plans are particularly beneficial for individuals who regularly use cannabis or marijuana. These plans do not require a medical exam, which can simplify the application process for cannabis users.

In Ontario, Canada, these insurance policies are accessible to individuals who use marijuana regularly, offering an efficient solution for those concerned about the implications of medical examinations on their insurance applications.

Term Life Insurance: A Preferred Option

For most cannabis users, a term life insurance policy is often the most suitable option. This policy provides coverage for a specific period, which can be aligned with the user's needs, such as covering a mortgage or securing financial stability for dependents [3].

The primary advantage of term life insurance is its straightforward nature and generally lower premiums than permanent life insurance options. It serves as an effective financial safety net, ensuring that the user's family is protected financially in the event of their passing.

call todayCall Today!
Speak with one of our friendly and knowledgeable advisors.
Phone: 613-817-4822

Financial Benefits of No Medical Exam Life Insurance

Focusing on the benefits of no medical exam life insurance, some Canadian life insurance companies now offer non-smoker rates [6] to cannabis users. This adjustment is significant as it acknowledges the difference in risk profile between cannabis users and traditional tobacco smokers.

By opting for no medical exam life insurance, marijuana users can avoid the stringent assessments typically associated with traditional life insurance applications, potentially leading to better premium rates and easier approval processes.

These comparisons and considerations are crucial for cannabis users in Canada as they navigate their life insurance options. Each option offers distinct advantages and should be evaluated based on the individual's specific usage patterns, health status, and financial goals.

Marijuana Life Insurance Case Studies

Dorothy is a 54-year-old female with Type 2 diabetes, Ostio Arthritis, and smokes/vapes marijuana regularly.

She seeks $250,000 of term 20 life insurance to protect her remaining mortgage and a permanent whole-life policy to cover funeral and final expenses when she dies $50,000.

Challenge: She treats her Ostio Arthritis with medical cannabis prescribed by her doctor. Because she has Ostio Arthritis and Type 2 Diabetes, as well as smokes and vapes cannabis extracts and marijuana products daily, she was 'Declined' for regular life insurance.

Solution: No Medical Exam Life Insurance as a non-smoker with UV Insurance.

They have no questions about Ostio Arthritis, and daily cannabis use is accepted as long as your doctor has not recommended you reduce your marijuana or drug and alcohol consumption.

Best No Medical Rates:

$250,000 Term 20 = $76.95/m
$50,000 Whole Life = $90.99/m
__________________________
Total: $300,000  = $167.94/m

Mark is a 38-year-old male who loves extreme sports and uses cannabis on weekends.

He seeks $500,000 of term 25 life insurance to protect his new mortgage.

Challenge: He is an extreme sports enthusiast who loves backcountry skiing, snowboarding, and snowmobiling. He was 'Declined' for regular life insurance for extreme sports.

He also smokes marijuana more than four times per week, and most non-medical life insurance companies will consider him a smoker, increasing his monthly payments.

Solution: No Medical Exam Life Insurance as a non-smoker with UV Insurance.

UV has no questions about extreme sports, so it is a perfect solution for Mark.

Best No Medical Rates:

$500,000 Term 25 = $61.65/m
__________________________
Total: $500,000  = $61.65/m

Sarah is a 42-year-old female and a breast cancer survivor for over 6 years. She has vaped marijuana regularly to help her sleep.

She seeks $350,000 of term twenty life insurance to protect her remaining mortgage and a permanent whole-life policy to cover funeral and final expenses when she dies $20,000.

Challenge: She had breast cancer over six years ago and is now cancer-free. During her cancer treatments, she started using cannabis to help with her appetite and sleep.

As a cancer survivor, she is no longer eligible for regular life insurance. Because she smokes and vapes cannabis more than four times per week, other no medical life insurance companies will consider her a smoker, increasing her rates significantly.

Solution: No Medical Exam Life Insurance as a non-smoker with UV Insurance.

Because she has been cancer-free for more than five years, she will be treated as if she never had cancer, and daily use of marijuana is not automatic; smokers rate like other carriers.

Best No Medical Rates:

$350,000 Term 20 = $31.23/m
$20,000 Whole Life = $27.41/m
__________________________
Total: $370,000  = $58.64/m

Isaac is a 61-year-old male musician who smokes marijuana daily for religious reasons.

He seeks $30,000 of permanent life insurance to cover funeral and final expenses when he dies to prevent his daughters from incurring these costs.

Challenge: He smokes cannabis and marijuana daily for religious reasons, and because of this, he was 'Declined' for regular life insurance. 

He also smokes marijuana more than four times per week, and most non-medical life insurance companies will consider him a smoker, increasing his monthly payments.

Solution: No Medical Exam Life Insurance as a non-smoker with UV Insurance.

Daily smokers of cannabis and marijuana for religious purposes are treated as non-smokers, and regular cannabis use is accepted as long as your doctor has not recommended you reduce your marijuana or drug and alcohol consumption.

Best No Medical Rates:

$30,000 Permanent Whole Life Insurance = $98.20/m
__________________________
Total: $30,000  = $98.20/m

Rates are subject to change without notice, and certain conditions apply.

Call us today for a no-obligation quote!

Tips for Applying for Life Insurance as a Cannabis Smoker

Disclose All Cannabis Usage Details

When applying for life insurance, full disclosure of cannabis use is imperative to avoid complications with claims. Applicants must provide detailed information [3] about the types of cannabis consumed, frequency of use, first and last usage, and average amount per session, as well as how they consume cannabis, either as a weed smoker, vaping cannabis extracts, vaping weed, edibles, beverages or pills.

Transparency is crucial to ensure that the application is processed correctly and to prevent the possibility of claim denial [1] due to nondisclosure.

Consult with an Insurance Broker

Engaging with our experienced life insurance brokers at Life Insurance Solutions can significantly aid cannabis users in navigating the complexities of life insurance. Our brokers are well-versed in the nuances of various cannabis and marijuana-specific life insurance policies.

They can effectively compare insurance providers to find the best rates and coverage [7] that suit the applicant's lifestyle and usage habits. Additionally, working with a life insurance advisor can help identify which insurance company's recreational use limits align best [9] with the individual's cannabis consumption patterns.

call todayCall Today!
Speak with one of our friendly and knowledgeable advisors.
Phone: 613-817-4822

Consider No Medical Exam Life Insurance Options

smoking cannabis life insuranceFor cannabis users, no medical exam life insurance plans can be particularly advantageous. These plans often do not require a traditional medical underwriting process, which can benefit frequent users.

Some insurers may still request a urine or blood sample to assess marijuana consumption levels; however, these policies generally offer a more streamlined application process [8].

Moreover, selecting an insurer that classifies cannabis users as non-smokers [8] can lead to more favourable premium rates, aligning with the benefits of no medical exam life insurance.

After quitting cannabis, it typically takes one year for life insurance rates to decrease, providing an incentive for those considering cessation or reduction in use [9].

Conclusion

Navigating the life insurance landscape as a cannabis user in Canada has evolved significantly, with insurers adapting their policies to differentiate between cannabis and tobacco users.

The focus on the benefits of no medical exam life insurance highlights the insurance industry's response to the needs of cannabis users, offering practical solutions like non-smoker rates [1] and avoiding invasive medical examinations.

This trend illustrates a shift towards more inclusive insurance policies. It reinforces the importance of understanding each available option's nuances to ensure that individuals secure coverage that aligns with their lifestyle and consumption habits.

In conclusion, the availability of non-smoker rates to cannabis users under no medical exam life insurance plans represents a significant advancement in encouraging fair treatment and inclusivity within the insurance industry.

It underscores an essential shift towards recognizing the distinct characteristics of cannabis use compared to traditional tobacco smoking. For those seeking to explore their life insurance options without the concern of unjust premiums or invasive medical questioning, these developments point towards a growing accommodation of diverse lifestyles.

Call today for a no-obligation quote, informing you about the best insurance solutions tailored to your unique circumstances.

FAQs

1. Can insurance policies in Canada cover cannabis? In Canada, many insurance companies now include medical cannabis in their coverage options. The eligibility for medical cannabis coverage depends on your specific insurance plan and the medical condition being treated.

2. Does Desjardins provide coverage for medical cannabis? Since 2016, Desjardins has provided medical cannabis coverage through its Health Spending Account (HSA), which will continue to be available for medical cannabis expenses.

3. What are the consequences of growing more than four cannabis plants in Canada? In Canada, the law permits adults to grow up to four cannabis plants per household. Growing more than this limit can lead to severe penalties, including fines ranging from $2,000 to $100,000, imprisonment for three to twelve months, or both.

References

[1] -  https://lsminsurance.ca/info-hub/life-insurance-and-marijuana/
[2] -  https://www.cbc.ca/news/business/marijuana-life-insurance-1.4722763
[3] -  https://briansoinsurance.com/how-does-cannabis-use-affect-life-insurance/
[4] -  https://www.policyadvisor.com/life-insurance/marijuana-life-insurance/
[5] -  https://www.lifeinsurancesolutions.ca/life-insurance/life-insurance-for-cannabis-users.html
[6] -  https://www.cpp.ca/blog/life-insurance-and-cannabis/
[7] -  https://www.moneysense.ca/columns/insurance-uncovered/how-do-life-insurers-treat-cannabis-use/
[8] -  https://loanscanada.ca/insurance/life-insurance-for-cannabis-users/
[9] -  https://protectyourwealth.ca/impact-of-marijuana-vaping-tobacco-life-insurance-canada/

call todayCall Today!
Speak with one of our friendly and knowledgeable advisors.
Phone: 613-817-4822

Table of Contents: