Cannabis and Insurance
Since the legalization of cannabis in Canada, insurers have had to reassess how they underwrite someone who is an occasional user versus someone who uses it for health reasons. In the past, all users would be declined coverage. Not so anymore; there a lot of products cannabis users can apply for.
The coverage will depend on the amount one is using and will help determine the rates as well. The applicant will be required to fill out a drug questionnaire, as well as the possibility of a blood and urine test. This will help determine if the policy can be issued as a non-smoker. Smoker rates are considerably higher. You can also choose to do a guaranteed issue policy, which does not require a medical, however the rates are higher.
“What are the usage guidelines?”
If you are an occasional user, which is considered to be two joints a week or equivalent (based on the cannabis product), you would most likely qualify as a non-smoker and be given standard rates.
Daily users will find themselves faced with higher rates or may not qualify for coverage at all. Having said that, you can still get insurance that does not require a medical and has guaranteed issue. Your premiums will be higher and you may be limited to the amount of life insurance available.
“What questions does the insurer ask?”
Applications will include questions to determine your usage. They will also include questions regarding your drug use history. Here are some of the common questions asked, based on an Equitable Life application:
Have you used any form of cannabis within the last 5 years?
Was it prescribed by your physician?
What is the frequency?
What is the date last used?
Have you ever been treated or counselled for drug consumption or abuse, or been recommended to seek treatment, or been recommended to reduce your drug consumption?
Have you ever been arrested, charged, or lost your job in connection with your drug use?
If you have been denied coverage in the past, you may still apply to another conventional insurance company. They will review your past application and may insure you based on a current evaluation. There are always the guaranteed or simplified applications that can be done which are all non-medical applications.
