By Jason Van Steenwyk


Get comfy with that bag of Doritos, since this is going to be a doozy.


It is high time the country took a a lot more realist and less hysterical method to the regulation of marijuana. THC, the active ingredient in marijuana, has demonstrated its effectiveness as an anti-seizure and anti-nausea drug, potentially useful in treating epilepsy and to help mitigate the side effects of chemotherapy for cancer patients.


And the potheads appear to appreciate it.


So even though marijuana remains on the federal Schedule I list of controlled substances – producing its possession and use illegal below federal law, 21 states and the District of Columbia already enable the use of marijuana for medicinal purposes. Florida is in the process of joining their ranks.


That quantity could rise as higher as 35, as 14 additional states are thinking about legislation to legalize marijuana use with a prescription.


States That Have Legalized Marijuana



a3d73 States1


The patchwork of states that have at least partially legalized medical marijuana has developed fairly a conundrum for life and health insurance coverage carriers. The truth that some states, like Colorado, have in fact gone far beyond legalizing marijuana is lending far more urgency to the dilemma: How does a single underwrite the marijuana user on a overall health or life insurance coverage application?


Underwriting


Beneath the old guidelines – when marijuana was illegal pretty a lot everywhere except amongst cancer patients who have been a lot more or less uninsurable anyway – underwriters could apply some blanket guidelines across the nation. For instance, we knew that casual marijuana use was not in and of itself a large deal, perhaps, but it could be correlated with other risky behaviors. At the quite least, underwriters knew that marijuana customers were engaging in petty criminal behavior.


Even so, a lot of life insurance coverage carriers were prepared to take on casual marijuana users at smoker rates – supplied there was no arrest record. An arrest record, however, was a significant strike against the applicant as proof of problem use and likely correlation with other drug issues as well.


But now we have 2 states, Colorado and Washington, that have allowed not just the medicinal use of marijuana, but have especially legalized the recreational use of the drug, as nicely. So national carriers must deal with 2 definite segments of marijuana users: Customers who are prepared to break state law – and consequently engage in criminal behavior in order to use marijuana, on the one particular hand, and users for whom marijuana is completely legal for them beneath state law.


One particular factor is for positive: If you are a marijuana user and you apply for life insurance, be up front about it when you apply. Your agent can write a letter to the underwriter explaining your predicament and use patterns and forward it with the application.


If you’re up front about it, underwriters are a lot less troubled by that than by anything that comes up in your healthcare records or drug tests that you didn’t disclose. If it shows up in your healthcare exam, count on to be declined.


As it takes place, even recreational marijuana use in states where it is illegal is not a deal-killer, by a extended shot. In some circumstances, carriers are even granting preferred non-smoker prices to occasional tokers.


Marijuana-friendly Carriers


According to Jeff Root, a life insurance agent and broker who has tracked how life insurance coverage businesses underwrite applicants who use marijuana, here are some prominent carriers who do write policies for customers:


  • American Common: Offers very best non-smoker rates if you use much less than twice per year. Less than twice per month gets you regular smoker rates. Much more than that and you go to the table, which means premiums vary, but expect them to be high.

  • Banner Life: Standard smoker for occasional customers substandard Table B Smoker for everyday users.

  • Genworth: Common Smoker for use 8 instances/month or significantly less.

  • ING Reliastar: Day-to-day users get Table 4 smoker prices.

  • Lincoln National: Up to 2x per week gets regular non-smoker. Declines any person utilizing more than 4 instances per week.

  • MetLife: Up to preferred-plus nonsmoker rates if you use significantly less than 1 time per week. 2x per week or a lot more acquire smoker rates. Everyday use is Table 4 rating and worse.

  • Mutual of Omaha: Regular non-smoker rates up to weekly, topic to lab results.

  • Minnesota Life: Will underwrite occasional recreational use at preferred non-smoker – offered you have no THC in your exam.

  • Prudential: Marijuana use up to 2x per month with damaging lab benefits can get you standard-plus non-smoker ratings. Something more than 4x per week will be declined.

  • Transamerica: Common smoker.

Medical Insurance coverage


The Cost-effective Care Act now prohibits health insurance carriers from rejecting marijuana customers provided they sign up with a certified policy by means of the exchanges throughout the open enrollment period. Otherwise, expect to be underwritten as a smoker at very best, outdoors of open-enrollment periods. Again, person companies differ.


Do not anticipate your health-related plan to authorize medical marijuana anytime soon. Even in states exactly where it is legal for medicinal purposes, it is nonetheless an illegal controlled substance beneath federal guidelines. No insurer to date has been prepared to attract federal regulators interest by putting marijuana on the formulary of approved drugs. So you’ll have to pay for any health-related marijuana you buy out of your own pocket. Nonetheless, 15 states allow you to grow your own plants.


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