How does marijuana affect life and disability insurance premium rates?

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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!

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