Denied For Life Insurance Because Of Drug Use? (Do This)
Posted in Life Insurance Tips last updated on December 29, 2021Life insurance companies routinely drug test as part of the life insurance medical exam. Plus, they test for virtually everything. Regardless of what you take, you still run the risk of getting denied for life insurance because of drug use.
The good news is that this does not mean you are barred from life insurance forever. It’s only a little more work on your part. The even better news is that your life insurance agent can do that work for you.
What were you denied life insurance for taking?
Sometimes you can get away with just applying with another company. Although that sometimes only applies to cannabis.
There are companies who will approve life insurance policies with a positive THC test.
If you got denied for life insurance because of marijuana…
The denial only makes obtaining life insurance a little more tricky. There is a question on any insurance application that ask if you have ever received a decline on a previous application. You will have to answer yes to this and why.
Luckily, if you re-apply with one of these 12 marijuana friendly life insurance companies, you shouldn’t have too much of an issue.
The problem comes in if you showed a ton of THC in your system at the time of your previous life insurance medical exam. With the companies who offer non-smoker rates, they prefer you smoke less than 2 or 3 times a week.
If you smoke daily, you are looking at smoker rates.
Since you have already taken the medical exam, the life insurance company has a rough estimate of how frequently you smoke based on the amount of THC in your urine.
Lying about it will result in another decline.
So be honest and upfront with your life insurance agent. That way he/she can direct you to the friendliest company for your smoking preferences.
If you got denied for life insurance because of some other drug…
That is more of a problem than marijuana. Most other recreational drugs result in an automatic decline.
So it’s best to be upfront, again, with your insurance agent about what the underwriting guidelines are for the company you want to apply with.
Have your insurance agent ask the underwriter what that company’s stance is on reapplying. Depending on the company, you are looking at completely sober for 1-5 years before they’ll accept you.
What to tell your insurance agent if you worry about getting denied for life insurance because of drug use…
Everything. Tell them everything. (Not your life story, but everything relevant.) Insurance agents hear so many weird things from people. They get to see all all the private medical details. I guarantee whatever you choose to take will not shock them.
Give them as much information as possible. They need all the details in order to find you the friendliest company. They also know what you HAVE to put on the application and what the company doesn’t specifically ask for.
If the insurance company doesn’t ask, never volunteer information.
Of course, if they ask and you lie, that counts as an attempt to defraud. Which means your beneficiaries might not get paid if you die.
Keep in mind that there is a clause in every contract that says the company will not pay if the insured person dies in attempt of a felony. (Think buying drugs.)
All information pertinent to your life insurance application is protected. Drug use (among other things) is never reported to any legal authority.
Are life insurance agents bound by any sort of confidentiality law?
Good question. Yes. Like lawyers and doctors, insurance agents cannot reveal information. HIPAA law protects all your personal information.
Find more information about HIPAA and how it relates to drug confidentiality here.
How will another company know if I got previously denied for life insurance because of drug use?
Two ways. First, there is almost always a question on your life insurance application which asks if you another company declined your application. Although sometimes the company will add the words, “in the last year” to that question. Thus if you wait, you can truthfully answer no.
The second way is a little more complicated. There is an independent association which keeps track of certain things about people from their life and health insurance applications. If you are thinking this sounds sketchy, it was not designed to keep tabs on people. Is it also not affiliated with any government entity.
The Medical Insurance Bureau (MIB) is an organization that helps life insurance companies protect themselves from fraud. Member companies have access to encrypted codes that are only kept for 7 years. One of those codes is whether or not a company denied your application.
The MIB is very closed lipped about what they do keep. We know for sure that the codes are vague. Designed to alert an underwriter rather than tell them what is wrong.
Also, companies are legally prohibited from making judgments on application solely on the codes they receive from the MIB. It is more of an alert than anything.
What Should I Do?
Talk to a life insurance agent immediately. They are there to help you find a way to protect your family, not condemn you in any way. A good life insurance agent can help you find coverage immediately if it is possible. They will have the industry experience to know which companies are the best options for you and your family.
You also might have to wait a year. Remember that a year is the magic number in the insurance world.
Some companies are more stringent about drugs than others. You might be facing a 5 year wait if something extreme happened. Many companies require that an applicant be tobacco free for 5 years before they are willing to offer non-smoker rates. There is a chance certain companies will not accept an application for 5 years depending on your situation. Ask your life insurance agent, they will know which companies to avoid.
Finally, it would be smart to compose an explanation letter. Even if you do not end up using it. Find your best writer friend and get them to help. Underwriters are human. They understand that sometimes we have compelling reasons to do things. Clearly explaining your point of view to the underwriter does not always help. Your life insurance agent can tell you whether or not this will help your specific circumstances.
What If I Went To Rehab?
This is one of the problems in the insurance community. Many times companies will assume that if you went to rehab, you have a huge problem. Maybe you were forced by a judge. Or you had an addiction so out of control that your family intervened.
They don’t realize that sometimes people need a little extra help. Rehab is one of the places they can find it. Everyone knows that rehab is more effective than prison anyway. Well, everyone except lawmakers. They don’t seem to get it.
Life insurance companies try to change with the times. Even if they tend to be more conservative. Time in rehab will affect your rates differently depending on the company. Companies are always changing their stances on this so it’s impossible to get you an accurate list. Again, this is one of those scenarios where you want to talk with your life insurance agent about which company will view this as a positive thing.
What About Criminal Charges?
You might be looking at a guaranteed issue policy here. Insurance companies don’t like insuring people with DUIs, much less drug related criminal charges. I’ll bet you can guess what our advice is going to be by now. Ask an independent life insurance agent.
Barring that, a guaranteed issue policy can be a good option to protect your family. At least until enough time passes to get those legal snafus well behind you.
One Solution for Just About Anyone
At Marcan Insurance, we strive to be the best life insurance resource for anyone who needs coverage. To help those who have no where else to turn, we do have a guaranteed issue policy that anyone can get approved for. There are no health questions and no underwriting. The application is easy and can be completed right here. After you complete the online part of the application, we need to have a 5 minute phone call to complete the voice signature.
People 18 to 75 years old will be approved for this policy. You can get $10,000 to $50,000 of coverage at reasonable rates. This is a great solution for those people that need to wait a few years or more until they can qualify for regular life insurance.
Caution! This guaranteed issue policy will not payout under the following conditions:
- Voluntarily taking any kind of poison or drugs or inhaling any kind of gas
- Intentional self destruction while either sane or insane
- Committing or attempting to commit a felony or participating in a riot
We don’t want you to think your family will be protected by this life insurance policy while you are using drugs of any kind.
How Marcan Insurance Can Help
We help people who smoke marijuana medically and recreationally find life insurance. There are several marijuana friendly life insurance companies out there. Some even offer non-smoker rates.
The good news is the industry is changing. Perhaps a little slow, but at least there isn’t as much discrimination as in the past. If you have been previously denied for life insurance because of drug use, it might be time to try again. Call (888) 987-8447 with any questions. It’s always 100% confidential and there is never any obligation to buy.
