Cannabis, Cigars, Cigarillos and Life Insurance

Why this topic for you today?  The things you do in your early adult life can affect your risk for insurance later in life when you are having a family.  It’s important to know that what you do now can affect your future when looking at starting a family and then needing insurance coverage.

Why is this important?  When insurance companies take a look at providing an insurance policy for you, not only do they look at your current age, smoking status, health, medical history and lifestyle, they also want to know about your past which will form a picture of your lifestyle.  Did you know that if you smoke 12 cigars a year, that you could be considered a smoker and thus your insurance costs can potentially double? Did you know that if you are a casual user of different types of marijuana products that they are not all considered the same risk?   Did you know that if you consume marijuana more often than a predetermined allowance by the insurance company you are at an increased risk which is similar to a smoker?  This information determines what type of risky lifestyle you lead and can determine if you are eligible or not to purchase traditional, underwritten insurance coverage.

What should you be thinking about?  Fortunately or unfortunately, it is always important to think about how today’s decisions could impact your life in the future.  Your lifestyle decisions today could negatively impact your future decisions if things like your insurance costs are double what they would be otherwise, at a time when the insurance coverage may be very important to the financial of you and / or your family.  In essence, certain lifestyle decisions made early in life could be very financially expensive for the rest of your life, which in turn takes away money that could be used for other things that are important to you.  Therefore, before starting a family or thinking about insurance, it is important to share your lifestyle history with your insurance advisor.  They are your direct link to the insurance providers, can be your advocate if they have a relationship with you, and can establish a new pattern to show the insurance company that there have been some changes in your life and you are no longer leading a risky lifestyle.

Mastery Principle:  It is always important to be Forward Looking in everything you do.

To learn more, check out this article at  MoneySense: How do life insurers treat cannabis use? | MoneySense

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