By Jason Van Steenwyk


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


It’s high time the country took a more realist and much less hysterical approach to the regulation of marijuana. THC, the active ingredient in marijuana, has demonstrated its effectiveness as an anti-seizure and anti-nausea drug, potentially worthwhile in treating epilepsy and to assist mitigate the side effects of chemotherapy for cancer patients.


And the potheads appear to enjoy it.


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


That quantity could rise as high as 35, as 14 extra states are taking into consideration legislation to legalize marijuana use with a prescription.


States That Have Legalized Marijuana



71dde States1


The patchwork of states that have at least partially legalized health-related marijuana has produced quite a conundrum for life and health insurance coverage carriers. The fact that some states, like Colorado, have truly gone far beyond legalizing marijuana is lending more urgency to the issue: How does 1 underwrite the marijuana user on a overall health or life insurance coverage application?


Underwriting


Under the old rules – when marijuana was illegal pretty considerably everywhere except among cancer patients who have been more or significantly less uninsurable anyway – underwriters could apply some blanket guidelines across the country. For example, we knew that casual marijuana use was not in and of itself a large deal, possibly, but it could be correlated with other risky behaviors. At the really least, underwriters knew that marijuana users had been engaging in petty criminal behavior.


Even so, a lot of life insurance coverage carriers had been prepared to take on casual marijuana users at smoker rates – supplied there was no arrest record. An arrest record, nevertheless, was a critical strike against the applicant as proof of difficulty use and probably correlation with other drug troubles as nicely.


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


A single issue is for certain: If you are a marijuana user and you apply for life insurance, be up front about it when you apply. Your agent can create a letter to the underwriter explaining your circumstance and use patterns and forward it with the application.


If you are up front about it, underwriters are a lot much less troubled by that than by anything that comes up in your health-related records or drug tests that you didn’t disclose. If it shows up in your health-related exam, anticipate to be declined.


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


Marijuana-friendly Carriers


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


  • American Basic: Delivers very best non-smoker rates if you use less than twice per year. Significantly less than twice per month gets you normal smoker rates. Much more than that and you go to the table, meaning premiums vary, but anticipate them to be higher.

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

  • Genworth: Standard Smoker for use 8 occasions/month or much less.

  • ING Reliastar: Day-to-day customers get Table 4 smoker rates.

  • Lincoln National: Up to 2x per week gets standard non-smoker. Declines anyone utilizing over 4 times per week.

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

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

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

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

  • Transamerica: Common smoker.

Medical Insurance


The Cost-effective Care Act now prohibits overall health insurance coverage carriers from rejecting marijuana customers supplied they sign up with a qualified policy via the exchanges in the course of the open enrollment period. Otherwise, expect to be underwritten as a smoker at ideal, outdoors of open-enrollment periods. Once again, person organizations vary.


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 below federal rules. No insurer to date has been willing to attract federal regulators attention by putting marijuana on the formulary of approved drugs. So you will have to pay for any medical marijuana you buy out of your own pocket. However, 15 states allow you to grow your personal plants.


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