The main thing to remember is that when asked by your insurer about drug use, do not lie. False information can result in loss of benefit premiums.
Use of Illegal Substances
There are different types of drugs, with different ways to take them. Some differentiate them as soft and hard drugs. For example, marijuana and hashish are classified as soft drugs while hallucinogens such as LSD, magic mushrooms and ecstasy are considered hard drugs (although there is no clear scientific criteria for these distinctions). Then there are other drugs that are injected/smoked like heroin, cocaine, crack crystal meth. These drugs are highly addictive.
(Note: all drug use carries significant health risks regardless of their classification.)
Risk Management Processes
Qualifying for traditional life insurance varies depending on your drugs of choice and your level of usage.
The use of soft drugs varies: for example, someone who smokes marijuana daily will probably be declined for traditional life insurance, while someone who occasionally smokes at parties may be charged the smoker’s premium. The majority of insurers are interested in your relationship with the substance for the previous five years.
However, if you’ve used hard drugs within three to four years prior to your life insurance application, you will probably be declined automatically for traditional life insurance as insurance companies consider you to be a higher risk.
Simplified Issue vs. Traditional Life Insurance
Simplified life insurance policies do not require medical tests, but there are up to 12 health questions to answer. For traditional life insurance there can be questions about the use of soft drugs within five-years of you application, but the simplified questions generally aren’t that stringent. This is a good policy for occasional recreational drug users.
Although being issued this policy isn’t guaranteed, you stand a much better chance of obtaining a simplified policy since you do not have to undergo a medical exam.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance has no medical exam or questions; you cannot be turned down for it. However, it is more expensive because of the risk the insurance company is taking. This is a good option for heavy drug users that need life insurance to protect their families and cover final expenses.
In answer to the question, “Can a drug user get life insurance?” the short answer is yes. But there are a few extra questions such as which type of coverage do you qualify for and which insurance company should you go with?
At Shelter Bay Financial Corp., we know that understanding life insurance products can be complicated, especially with regard to drug usage. We specialize in life insurance for many different lifestyle choices and can help you understand the process, as well as find you the best pricing options.
To find out more or to speak directly with a life agent Call 1.888.498.5288.