Will marijuana usage get me classified as a smoker for life and/or health insurance policies?
If you have ever applied for a life or health insurance policy, you might be aware of how significant a smoker rating can be on the cost of insurance. Let’s look at an example for a 40-year-old male applying for a $500k, term-20 life insurance policy:
| Non-Smoker | $50/month |
| Smoker | $125/month |
Rates courtesy of Empire Life
As evidenced above, this individual can expect to pay 2.5x more for their insurance if they are deemed to be a smoker.
So, what constitutes a smoker? Insurance companies treat this differently, but here is one definition from a prominent Canadian insurer:
A smoker is considered someone who, in the past 12 months, has used more than 12 large cigars, or used any other tobacco, cigarette, e-cigarette, cigarillo, a pipe, chewing tobacco, nicotine patches or gum or betel nuts. Tobacco use includes use of small cigars.
Marijuana is notably absent from the above definition. That is because marijuana usage does not get you labeled as a smoker for insurance purposes.
However, that does not mean insurance underwriters disregard it completely. If marijuana usage is deemed to be excessive in nature, the insurance company is likely to give you a “rating,” which means you are higher risk and the insurance premium will be increased accordingly. What is “excessive in nature?” This would include usage in excess of four joints per week; however, each case will be viewed individually by the underwriter and some insurers are more lenient than others. If your marijuana usage is frequent, it would be advisable to work with your insurance professional before submitting an application to find the insurance carrier that best fits your lifestyle.
For more information on marijuana usage as it pertains to life or health insurance policies, please contact Jeff Graham at (604) 363-7549 or jeff@firstoakfinancial.ca.
DISCLAIMER: this commentary is provided for general informational purposes only and does not constitute financial, insurance, investment, tax, legal or accounting advice.