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.
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.
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 |
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.
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!