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Marijuana Use & Life Insurance: What Financial Advisors Need to Know

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With evolving views on marijuana use and shifting underwriting guidelines, financial advisors have an opportunity to help clients navigate life insurance options effectively. Many carriers now offer Non-Smoker rate classes for marijuana users, and in some cases, even Preferred or Preferred Plus Non-Smoker rates are available. Understanding these nuances can help you secure better coverage for clients while strengthening your role as a trusted advisor.

Marijuana Use & Life Insurance: Breaking Down the Myths

One of the biggest misconceptions is that any marijuana use results in Smoker rates. The reality? Many top life insurers are offering competitive Non-Smoker rates for recreational and medical users, depending on frequency and method of consumption.

General Underwriting Guidelines for Recreational Marijuana Use

  • Occasional Use (1-2 times per month): May qualify for Super Preferred Non-Smoker or Preferred Plus (varies by carrier).
  • Moderate Use (Up to 8 times per month): Often eligible for Preferred Non-Smoker or Standard Non-Smoker rates.
  • Frequent Use (More than 8 times per month but less than daily): Typically rated at Standard Non-Smoker or Table ratings, depending on the insurer.
  • Daily Use (16+ times per month): Some carriers will decline coverage, while others may offer Table ratings or Standard Non-Smoker rates for edibles.

Key Carrier-Specific Guidelines

Understanding which carriers are most favorable to marijuana users can make a big difference in securing competitive rates for your clients. Here’s a breakdown of underwriting trends:

Carrier Usage Frequency Best Available Risk Class THC Testing?
Top Carrier ≤ 2x/month Preferred Non-Smoker (if additional criteria met) No (Underwriting discretion)
Top Carrier ≤ 8x/month Preferred Plus Non-Smoker No
Top Carrier < 1x/month All Preferred categories No
Top Carrier ≤ 2x/month Preferred Non-Tobacco possible Yes
Top Carrier ≤ 1x/month Super Preferred Non-Tobacco No
Top Carrier Up to 2x/year Preferred Plus No
Lincoln Financial 1x/month Preferred Plus Non-Tobacco No
Mass Mutual (30+) ≤ 3x/week Select Preferred No
Mutual of Omaha ≤ 8x/month Preferred Non-Tobacco possible No
Nationwide ≤ 2x/week Preferred Plus Non-Tobacco No
Prudential (21+) ≤ 3x/week Non-Smoker Plus No
Transamerica ≤ 8x/month Standard Non-Tobacco No

How Financial Advisors Can Use This Information

1. Guide Clients to the Right Carriers
Knowing which companies offer the best rates for different usage levels helps you customize recommendations based on client needs. For instance, if a client smokes 8 times per month, they might qualify for Preferred Plus with Corebridge but only Standard Non-Tobacco with Transamerica.

2. Educate Clients on Policy Selection
Advisors should explain how method of use (smoking vs. edibles vs. vaping) affects underwriting. Some carriers decline frequent smokers but allow Standard Non-Tobacco rates for edible users at similar frequency levels.

3. Address THC Testing Concerns
Not all insurers conduct automatic THC screening. If a client is worried about a positive THC test, advisors should steer them toward carriers that do not test unless required by underwriting discretion.

4. Be Proactive About Policy Structuring
For clients with daily use, options become more limited. Financial advisors can explore alternative structuring, such as stacking policies or recommending term insurance with later conversion to permanent.

The Bottom Line

Marijuana use does not automatically mean higher life insurance costs. With the right strategy and carrier selection, financial advisors can help clients secure affordable, high-quality coverage while positioning themselves as knowledgeable experts in an evolving underwriting landscape.

📩 Need help finding the best carrier for a specific case? Contact us for underwriting support and custom case design solutions!