Life Insurance Companies Getting High on Rates

As marijuana use becomes more mainstream, lifeinsurance companies are struggling with how, and if, they should penalizecustomers. 

After surveying the rules of many major insurers, theresults are quite inconsistent.  Somecarriers apply no penalties if marijuana is used with a prescription whileothers penalize marijuana users who smoke a few times a month the same as aregular cigarette smoker.  One insurergoes so far to as to charge a once-a-year marijuana smoker the same rate as aregular cigarette smoker, which can be 2 to 4 times more than nonsmokers.  This is a problem for marijuana legalizationactivists who note that marijuana has not been definitively linked to healthproblems in the way that tobacco has, and that smoking marijuana isn’t the only wayto ingest it. 

Because 18 states have legalized medical marijuanaand Washington and Colorado have gone even further, life insurance companiesmay rethink harsh policies towards marijuana as decriminalization continues.

See Matthew Heimer, WhyMarijuana, Estate Planning Don’t Mix, Market Watch, June 24, 2013.