Advisors Blog

Underwriting Life Insurance for Marijuana Users

Published on February 16, 2021


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While admitted marijuana usage appears to be increasing among insurance buyers, underwriting those risks is becoming more complex. Currently, more than half of U.S. states allow medicinal or recreational use of marijuana and that number is expected to continue growing. With the ability to legally purchase marijuana in most states, many insurance carriers are responding with more liberal underwriting rules. When you have a marijuana-using client, it is critical that you discuss the specifics with your GBS Brokerage Manager and allow us to guide you to the appropriate underwriting solution and results.

Suggestions for dealing with marijuana use:

  • Ask all clients if they use marijuana or CBD products in any form, smoked or ingested. We are seeing increased usage in almost all age groups. 
  • Although marijuana is legal in your state, that does not necessarily mean the carrier sees it as insurable.
  • Frequency of use is a very important criteria. Those carriers that will issue Preferred rates are unlikely to do so for any admitted usage more than two times a week, but each carrier is slightly different.

Whether your client uses medicinally or recreationally, we can provide the appropriate product, carrier, and underwriting class available. Please remember that your client should always attest to the fact that they use marijuana on the application upfront in as much detail as possible.

Click below for a list of GBS core carriers and their marijuana usage guidelines. The rate classes can vary from smoker rates to Preferred Best Non-Tobacco rates, depending upon the characteristics of your individual situation.


Marijuana Use Consideration for Non-Tobacco Rate Classes

Previously, with any Marijuana use LGA's best offer was Preferred Tobacco rates. They review the overall unique medical context of each applicant and can now consider:

  • Preferred Plus NT for very infrequent use of 1-2x per year.
  • Standard Plus NT for recreational use up to 8x per month.
  • More frequent use will be reviewed for individual consideration.

Please keep in mind, these are best case ratings and do not include other medical conditions or histories which will be taken into consideration. With these changes they're introducing Marijuana screening to their urine test panel. For those who test positive, a delay of a few days may be expected while a confirmation second screening using existing blood work is conducted. No reconsiderations will be made on previous cases.




We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

For agent use only - not for use with the general public.

Corporate CA License No. 0D87913


21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2021 Arthur J. Gallagher & Co. 




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