The impact of marijuana legalization in Canada went far beyond the lives and health of cannabis users. The Cannabis Act, or Bill C-45, that came into effect on October 17, 2018, sent ripples across the life insurance industry as well – there was now one more lifestyle factor to consider in the lives of customers.

The industry has made changes to marijuana and life insurance since then. These adjustments include how they process applicants and how they calculate premiums. Importantly, pot users can now purchase life insurance policies that fit their lifestyle and needs without having to pay higher premiums.

We’ll be covering these factors in this article – the most frequently asked questions, types of policies, and key points to consider when looking for life insurance as a cannabis user:

The Key Takeaways from Marijuana and Life Insurance

• Life insurance companies had to re-evaluate the impact of legalization on their premium rates after it was announced that marijuana is now legal.
• Some life insurance providers will still approve you instantly if you’re a recreational marijuana user.
• An underwriter will refer you to someone to help you understand your marijuana use.
• It is possible to get life insurance for Cannabis users.

Life insurance before Marijuana Legalization

Insurers had been reviewing their life insurance offerings to cannabis users before Bill C-45. The public’s attitudes towards marijuana were changing and so was the number of cannabis users. As marijuana became more mainstream, insurance companies began to pay more attention.

They began to update their underwriting protocols. One of the most significant changes was to remove marijuana from the high-risk category tobacco occupies. As early as 2016, some of the largest insurance companies began to do this, stating that marijuana users would not be charged smoker rates unless they also used tobacco.

Other factors that distinguish users are their purpose and frequency of use. For example, those who use it for recreational purposes less than once a week could be eligible for non-smoker rates. For medical reasons, the coverage rates would be comparable.

How do insurance companies view Marijuana users?

Here are some factors insurance companies take into consideration when creating quotes for marijuana users.

Lifestyle Factors

Companies will need to verify that customers have disclosed their marijuana use when applying for life insurance policies. Many policies require medical examinations to support this, including blood and/or urine test. However, policies can be arranged that do not require these tests. We’ll get to that later.

Other than your medical test results, important factors include your lifestyle, general health, family history, and whether you smoke. To determine whether you are a high-risk or low-risk policyholder, life insurance companies use determinants. If you smoke or have health problems, you’ll likely be considered higher-risk and pay higher premiums.

Marijuana Use Frequency, Methods & Purpose

The same applies to marijuana users who use it recreationally or medicinally.

Some insurance companies don’t distinguish between smoking a joint and eating a magic brownie. They will still provide the same coverage and rate for life insurance. Some companies are more accommodating with edibles and will offer a non-smoker rate, even if you smoke less than two cigarettes per week. Cannabidiol (or CBD oil) is less likely than other drugs to impact insurance premiums.

Recreational marijuana use is generally considered low-risk. Another risk factor is a history of anxiety or mental illness. When combined with marijuana, this can make you more vulnerable. You should also consider whether marijuana affects or impairs your driving ability.

A rule of thumb is that the premiums for life insurance will be higher if you are in poor health.

Life insurance for Casual Marijuana users VS. Regular Marijuana Users

Marijuana users must pay attention to what insurance companies consider ‘frequent use’.

Some companies limit you to two or fewer joints per week. Others have a maximum of four joints per week. Companies will consider you a frequent or regular user if you smoke more than this. You are exposed to the same risks as a smoker.

There are three types of life insurance policies that you can choose from. These are the standard life insurance policies that offer 1) non-smoker and 2) smoker rates.

An underwritten policy requires blood or urine samples. The non-smoker rate will be more expensive than the smoker, but they are generally cheaper for users of marijuana. You should be prepared to take the above exams and give a complete medical history. If you are approved for coverage, your premiums will be lower.

This third option does not require medical exams. These insurance policies can be classified as either a 1) simplified-issue life insurance that covers several health-related questions, but does not require a medical exam, or 2) guaranteed issue insurance that does not include any questions or requires no medical exams. The insurance company is at greater risk without underwriting. This can lead to a higher insurance premium and sometimes, even less coverage. Non-medical policies may also have a “no benefits period”, which can look like two years before you are eligible for any payouts should anything happen.

Are there any drug tests that I need to pass when applying for life insurance as a Marijuana user?

We’ve seen that there are many options for marijuana users who want to apply for life insurance.

Non-medical life insurance policies require an underwriting process. A complete underwriting process requires a medical exam, which includes a drug test.

Your application includes free blood and urine tests that can help you identify whether or not you are a marijuana user. Tetrahydrocannabinol, or THC, is the chemical that shows up in blood between three and 14 days of use, or in urine up to a month after.

These tests can also be used by insurance companies to check that you are telling the truth about your use. You must be honest with your applications. Insurance fraud is when you lie on your application. There are consequences if you don’t tell the truth, such as:

• Your application can be denied
• Your dishonesty can be shared with other providers by your insurance provider
• Your policy can be canceled if fraud is discovered
• Your family could also lose their payout if the worst happens. They will likely ask for medical records to confirm any history of marijuana use, including blood and urine tests.

Which questions should life insurance companies ask about Marijuana?

Are you a smoker? Here are some examples of the questions that insurers might ask you when you apply for life insurance.

• Do you use marijuana? What type of marijuana do you use? How often and how much?
• Were you prescribed by a healthcare professional for Cannabis use? If yes then please state the reason.
• Have you ever consulted a medical professional, received any treatment, or been recommended for treatment or counseling for drug use?  
• Have your job duties been affected or restricted in any way due to drug use? Have you lost your job, or have you missed any time from work or school because of drug use?
• In your past, have you ever been hospitalized or treated for a drug overdose?
• Have you experienced or suffered from any medical condition or impairment related to your drug usage?
• Are you or have you ever been a member of Alcoholics Anonymous, Narcotics Anonymous, or a similar association?
• Have you been charged with impaired driving or had your driver’s license suspended, been arrested due to the influence of alcohol or drugs? Have you been required to attend court-ordered alcohol or drug awareness programs?

Life insurance is designed to provide some financial security to your loved ones after you’re gone. The money can be used to pay off debts, pay your spouse’s pension, or pay your children’s education costs. There are many types of policies available. It could be a financial disaster for your family if you don’t have the right information. These are the most common mistakes that people make when buying life insurance policies.

The Wrong Type Of Life Insurance Policy

There are two basic types of life insurance: term and permanent. Term policies provide a defined death benefit and are in effect for a fixed time. Term life insurance can typically be purchased for a 5, 10, 15, 20, or 30-year term.

Permanent life insurance, on the other side, is in place throughout your entire life. It can be divided into three types: Whole life, Universal, and Variable Life. A whole life insurance policy allows you to build cash value that you can draw against later on. Different types of investments are linked to universal and variable life policies.

You will need to decide what you want from your policy when deciding between term and permanent life insurance. You can then weigh the benefits and costs of each policy. A term policy might be the best option if you have to pay your mortgage or other monthly bills and your spouse is not present.

You might also be looking for policies that can earn you some returns on your investment. Permanent policies are worth looking into if you’re willing to pay a bit more.

If you are overwhelmed by the choices and unsure of how a life insurance plan can fit into your other financial goals, you might want to speak to a financial advisor. Talking to a financial advisor can help you discuss your priorities (retirement, college tuition, etc.). In the context of making certain, you can meet your family’s goals even if you have to leave.

Underestimating your life insurance needs

In addition to choosing a policy type, you should not just pick a number from thin air. This way you will run the risk of selling out your beneficiaries later on if you don’t do your research.

When determining how much life insurance you require, there are many factors to take into account. These factors include your age, overall health, and life expectancy. You may not require as much coverage if you have a substantial nest egg and don’t have a lot of debt. If you have young children, and your spouse isn’t working, you will need enough insurance to cover them over the long term.

It is important to not underestimate the worth of your spouse who is not working. You won’t need to have life insurance to replace income lost in the event of your spouse’s death. This money can be used to cover expenses such as child care and housekeeping.

Do not compare life insurance rates

You should shop around for the best rates, just like with any type of insurance. Signing up for a life insurance policy without comparing rates for a few different companies could end up unnecessarily costing you money.

You should ensure that you are providing the same information to all insurers when you look at multiple plans. To find any differences in coverage, you should also review all policies. This will help you get the best quotes.

Putting a focus on Life Insurance price

Sometimes, the price of purchasing life insurance can be too much to resist. You might be tempted to reduce your coverage to get a lower premium. Life insurance is something you cannot afford to cut corners on.

Your out-of-pocket expenses are a greater concern. It is important to consider whether the savings you make now are worth the potential impact on your loved ones when you pass away. You may want to review your budget if you feel that life insurance is too expensive. You might be able to cut costs before you decide to get less coverage.

Waiting Too Long To Buy Life Insurance

The earlier you purchase life insurance, the better. As you age, your premiums will increase. Even if your health is good, premiums will increase each year that you delay. You also run the risk that you will get a serious illness, which could lead to higher premiums or even being denied coverage.

Bottom line

You should not forget your life insurance policy once you have decided on it. Regularly review your policy to ensure it meets your needs. You can have peace of mind knowing that you have the right coverage for you and your loved ones.

Do any of these ring true for you?

• You’ve thought amount moving in with your partner 
• You’re thinking of getting married 
• You’re currently looking for your dream home 
• You are planning your wedding day 

There’s another important item that you might forget to think about and that is buying life insurance with your special someone.

Life insurance for couples can be considered one of the most important investments you make together. This is a way to invest in your future together and provide peace of mind. Your partner will be protected no matter what.

What should you look out for? What are the best providers for you both? This article will cover everything you need to make an informed decision.

• Why is it important for couples to have life insurance

• Why you should purchase life insurance

• There are many types of insurance that couples can choose from

Why Couples Should Have Life Insurance

You may share financial responsibilities if you are married or live with your partner. A shared mortgage, children to support, joint bank accounts, or co-signed loans might be some of the things you have in common. If one of you passes away earlier than you expected, the other partner will be responsible for paying all expenses together – unless they have life insurance.

Life insurance provides financial security for the spouse and dependents (e.g. children or parents who are aging) It protects your dependents in the event of your death or that they are unable to pay their bills and continue their lives.

It is for these reasons why life insurance for couples is so important. It covers your whole family. This financial contribution can be made from income earned through employment, or other contributions that lower family costs such as a stay-at-home parent who provides “free” childcare.

Life insurance does not eliminate the emotional burden of death. It can help reduce the financial stress that your family would experience if you or your partner die unexpectedly.

What is the best time to buy life insurance for a couple?

It doesn’t mean you have to get life insurance quotes the first time.

It’s important to have this conversation when you begin to bring more of your life together. When you have shared responsibilities and dependents, it’s a good time to think about life insurance for couples. This is the most common moment when people get married or begin living together. It’s a significant milestone and where assets start to combine.

You probably have more expenses now than ever. You might have just paid down a home or gone all out for a wedding, which you are now paying off. Or spent a lot of money on gear for your baby. It might be tempting to delay buying insurance for a while.

If you are healthy, the chances of dying in your 20s and 30s are very low. It’s also a time when you might not be as financially secure in the future. Your salary isn’t as high as it would have been in ten years. This makes any expense seem more difficult right now. It could prove difficult for your partner financially if one of you dies unexpectedly.

The good news is that you can buy life insurance when you are young. You’re likely to be in good health at this age, which means you are less risky to insure. It is less risky to insure. You can lock in a lower rate if you and your partner apply sooner than you think.

Types of Life Insurance For Couples

There are two options available if you’re looking for life insurance together: Single or joint life insurance. Each has its pros and cons so let’s take a look at these two options when it comes to life insurance for couples.

Single Life Insurance

You and your partner can each purchase life insurance for yourself. The death benefit of one of you pays to your beneficiary when the other person dies.

Why do some couples buy policies as individuals instead of as a couple? There are several benefits to purchasing single-life insurance policies together, such as:

• You have the flexibility to select different coverage amounts: You can select different lengths and coverage levels with different plans. If your financial contributions are different or expected to last for a different amount of time, this is a good option.
• Longer coverage: The policy of the other partner will continue to protect them until they die if one of you passes away.
• Simpler division if necessary: You won’t have the hassle of splitting your coverage into separate policies if you and your spouse are married. Your individual policies will continue to cover you.

Flexibility comes with a price, just as when you purchase airline tickets. It is more expensive to buy two life insurance policies than one.

Joint Life Insurance

You have the option to purchase a joint policy for life insurance if you are married or in a common-law partnership. A joint insurance policy covers you and your spouse. Your death benefit depends on the type of policy you have. It pays out when your partner dies, or when your spouse has died and is paid to another beneficiary (a second-to-die policy).

You’ll typically pay less if you have two policies, but you will usually pay less if you have joint life insurance. The cost difference may be minimal if you are both young and in good health.

You should also be aware of the limitations associated with joint life insurance policies.

• The same timeline: It’s easy to keep track of different coverage periods and plans. Joint life insurance will provide the same coverage for both you and your partner.
• Protection for the surviving partner: The policy’s first-to-die clause doesn’t cover the spouse who is still living. A new policy can be expensive, depending on the age of the surviving partner.
• Higher rates possible in the future: You will need to apply for a new insurance policy if your relationship ends before you die. You will be more costly to insure if you are older.

What do you think?

Joint life insurance may be the best option for you if you want to reduce costs and are eligible to apply for it. If you feel that it is more important to have robust and flexible coverage for the whole time you plan to use it, you can opt for two policies.

How to find the best life insurance for couples

Many insurance companies offer coverage for you, your partner, or both. Sometimes even one plan. How do you choose the right provider?

Here are some things to consider when looking for the best couples life insurance:

• Price: You want to get the best price. If you and your partner apply for coverage, some insurers will offer a discount.
• Faster approval time: You don’t want to wait for approval for months. Consider these options: Insurers that respond quickly to applications.
• Electronic document and application delivery: This is an important aspect of the criteria. You will typically receive coverage quicker if you choose an insurance company that accepts applications electronically and can deliver insurance documents electronically.

Lastly, speak with a trusted broker who isn’t looking for a quick buck. Many insurance companies still use high-pressure sales tactics but it doesn’t have to be this way. You can get a free insurance quote from a company that doesn’t have commission sales reps. If you think the coverage is right for you and do not want to be pressured visit our Quoting Application to get a quote without having to add your personal information.