Customers’ Pot Smoking May Not Be A Deal Breaker For Life Insurers
If you smoke marijuana and you’re shopping for life insurance, chances are you can find a company that won’t penalize you for your habit, but you may have to weed out several insurers to find the best policy.
Eighty percent of the 148 underwriters who were surveyed by reinsurer Munich Re at the Association of Home Office Underwriters annual conference last year said their company factors marijuana use into its decisions on how to price policies and whether to offer coverage. Yet, of those, 29 percent classify marijuana users as nonsmokers, potentially allowing them to qualify for the best nonsmoker rates.
How often recreational users smoke pot is a key question for life insurers. At Prudential, for example, people can get high as often as three times a week and still qualify for nonsmoking rates. Someone who admits to smoking four to six times per week would have to pay a bit more, while anyone who uses marijuana daily wouldn’t be offered a policy, said Thomas Farrell, vice president of life underwriting at Prudential’s individual life insurance business.
At MetLife, anyone who smokes marijuana less than once a week is considered a nonsmoker, said Meghan Lantier, a spokeswoman for the company.
For life insurers, frequent pot smoking is a red flag in the same way that frequent alcohol consumption is, said Bill Moore, vice president of underwriting and medical at Munich Re, in an interview about the survey.
“The more you have, the higher the risk is because you’re more exposed to things that could cause death,” he said. “Do they smoke and drive, have they had infractions, are they flying an airplane while using marijuana? Those are all things a carrier would look at and price those risks.”
Medical marijuana use is generally a different calculus altogether for insurers, Moore said. People who smoke pot to reduce pain or nausea associated with cancer, arthritis or AIDS, for example, will be evaluated based on the underlying disease or condition.
This week, Ohio became the 25th state, along with the District of Columbia, to legalize medical marijuana. Four states and D.C. allow recreational use. Under federal law, however, marijuana remains a Schedule 1 drug, judged to have no medical value and a high potential for abuse.
In contrast to life insurers, health insurance companies don’t factor in marijuana use in rate-setting decisions, said Clare Krusing, a spokesperson for America’s Health Insurance Plans, a trade group.
“The substance is still prohibited on the federal level, so health plans don’t have specific questions to prompt for marijuana use among enrollees,” she said.
Please contact Kaiser Health News to send comments or ideas for future topics for the Insuring Your Health column.
Related Article: Medical Marijuana Charges Dismissed
Common Health Issues That Affect Middle-Aged Men
As you age, your body often declines in health. Because your body is not in its prime and your organs have been working longer,…
How to Measure Product Success in Your Business
As a business owner, it is paramount to measure the success of your products in order to expand and reap profits. By surveying which…
What to Do Before You and Your Partner Decide to Have a Baby
Having a baby is a big step to take with your partner. You’re bringing a new life into the world and you’re permanently changing…
What to Do Before Buying a Business
If you want to build wealth, owning a business can be a great way to do that. Some people make that happen by building…
Why Old Software is Hurting Your Business
Software is essential for just about every conceivable business. No matter your industry, no matter your market, you need to be taking advantage of…
Crucial Business Functions That Require Greater Investment
There are a lot of elements that go into running a business. However, some of them deserve special attention. When you shift your focus…
What You Need to Know About Smart Credit Card Use
Are you applying for a credit card for the first time? Having a credit card will open many doors for you, especially if you’re…
How to Improve Cybersecurity at Your Business
Every business in the modern world is going to incorporate a substantial amount of technology. This will also be true for your business, no…
Health Risks That Increase as You Get Older
There are plenty of things to look forward to as you age. Retirement tends to be one of the more commonly discussed and planned-for…