October 20, 2020
Will Cannabis Use Affect my Life Insurance Quotes?
According to self-reported figures from Statistics Canada, over 5 million Canadians use cannabis.
For years, insurance companies have categorized marijuana users as smokers, charging them 2 to 3 times more for life insurance than non-smokers. Health risks associated with tobacco use are widely known and accepted by most, which explains the increased cost of insuring tobacco smokers. In Canada, the legalization of cannabis in 2018 has led to a streamlined, government-approved marijuana being readily available. With this policy change, insurance companies have begun to update policies.
Stigma and limited scientific studies have historically influenced public and corporate perceptions of weed. However, the use of THC to treat various medical conditions and general acceptance of the substance has forced policymakers to rethink attitudes. What does this mean for your life insurance quotes?
Life Insurance Quotes in the Time of Legal Cannabis
Most insurance companies categorize someone as a smoker if they’ve consumed tobacco in the last 6 to 12 months. While marijuana no longer determines a default ‘smoker’ rate, there are limits to consumption for certain insurance rates. According to this CBC article, most insurance companies limit pot consumption to 2 to 4 usages per week, whether it’s smoked, or ingested. However, certain insurance plans don’t have caps on edible usage. This makes comparing life insurance quotes crucial. That’s why Insur Simple is a great tool for everyone. Finding insurance quotes online has never been easier.
Medical marijuana is viewed differently by insurance companies. Rates are often determined by the underlying health issue being treated, which can result in substandard ratings. However, some insurers may offer standard rates if the use is limited to a certain amount per year, or if no smoking is involved.
Honesty is Best When Buying a Life Insurance Policy
Shopping around for the right plan is important. Not all plans are made equal, and Insur Simple is designed to streamline the process of getting you the best plan for your life.
When looking at life insurance quotes, it’s important to be honest about cannabis use. If during the underwriting process, an insurance company determines you’ve misrepresented marijuana use, you could be subject to intrusive medical tests, higher premiums, or be denied coverage altogether.
Times are changing, and with the stigma slowly evaporating, the law and insurance market are on your side. Considering how many Canadians use cannabis, insurance companies don’t want to scare away potential clients with high premiums, meaning the tides are turning in your favour.
Want to learn more about rates and coverage? Check out our life insurance calculator.