How to get a Good Marijuana Industry Life Insurance Policy

The unfortunate reality for the majority of legitimate marijuana industry owners and their employees is that most life insurance companies will decline marijuana industry life insurance. For all the same reasons that it’s hard to get adequate banking services.

It’s easier for the insurance industry to say, “No, thanks” than to analyze or fight the federal regulations that are tying the hands of tax-paying business owners. Thus making it difficult for business owners to offer their employees group health care or life insurance.

Cannabis business owner insurance guide

State vs. Federal Legislation and Those Left Behind

marijuana industry life insurance problem
More companies will approve recreational smokers than farmers or dispensary employees.

The specific legislation prohibits businesses from “knowingly engag[ing] in a monetary transaction in criminally derived property of value greater than $10,000.” Not all life insurance transactions add up to that amount, but it’s safer to make a corporate “No” policy than taking the issues case by case.

More and more states throughout the U.S. are approving legislation regulating the use of both medical marijuana and recreational marijuana.

Ironically, recreational hobbyists and those with a medical marijuana card have a greater chance of finding affordable life insurance. However, many of these same life insurance companies which will offer coverage to users or patients will not offer marijuana industry life insurance.

Cumulatively, the marijuana industry is now worth billions of dollars and employs tens of thousands of employees both directly and indirectly.

The Current Situation of the Marijuana Industry Life Insurance Problem

There are over 850 life insurers in the United States. For those who work in the marijuana industry, less than a handful of life insurance companies will offer life insurance coverage.

Marcan Insurance can help because we work with the few life insurance companies which will underwrite policies for those who are legitimate marijuana business owners. We can also secure approval for those who work as marijuana industry employees.

Marcan Insurance is one of a few independent life insurance agencies that specialize in finding marijuana industry life insurance. Because we believe that everyone has the right to protect their families.

Call us right now at (888) 987-8447. We will answer your questions and walk you through the process.

cannabis life insurance tip

Quick Tip: If you use marijuana less than 3 times per week, view rates now by using the Instant Quotes form on this page. Enter your information, select “NO” for smoker and “Regular Plus” for health class. Scroll down to the rate for Prudential. This will give you an idea of pricing.

Why Decline Life Insurance for Marijuana Industry Workers and Owners?

What reason could insurance companies possibly have to decline thousands of people just because of the industry in which they work?

It all boils down to federal law. Simply put, federal law states that marijuana is an illegal substance. Marijuana was declared as an illegal substance by the federal government as far back as 1937.

Although over half of U.S. States have legalized medicinal and/or recreational cannabis, the federal government has been slow to acknowledge this cultural shift.

Many life insurers worry about being financially penalized or prosecuted by the federal government as well as concerns over brand reputation. It seems strange that a growing number of life insurers will approve people who smoke for recreational and medical reasons. But they are very unlikely to approve any marijuana industry life insurance.

Many life insurers are taking a “wait and see” approach. The simple fact that tens of thousands of marijuana industry employees are being left vulnerable will eventually force a proactive change.

change in marijuana industry life insurance
More and more insurance companies are accepting people who smoke recreationally without penalties. Some companies are starting to insure owners and employees in legal cannabis businesses.

Change is Coming for Marijuana Industry Life Insurance But…

Evolution on this front will be a slow process. In the here and now, the families of marijuana business owners and employees are left exposed to financial catastrophe because they can’t find life insurance approval.

Cannabis industry owners and employees need life insurance right now. Not when the insurance industry gets around to it. Marcan Insurance can help. We explain what types of life insurance are available for marijuana industry life insurance owners as well as employees.

There are 3 types of life insurance solutions which we can help you find here at Marcan Insurance for those in the marijuana industry. So there is no reason to put it off until the industry becomes more accepting.

Let’s look at what’s available in more detail.

Life Insurance for Marijuana Business Owners and Partners

Every business owner is aware of the need for business life insurance. This applies to owner and their partners in the marijuana industry.

If you have a loan for your business, then you probably need a collateral assignment of life insurance for your bank or lender. There are not many companies that offer this policy for a cannabis business, but we can get it done.

Life insurance is required to protect buy/sell agreements and is especially vital for key-man life insurance.

The success of a marijuana enterprise must ensure the successful continuation of ownership should an owner or a partner die unexpectedly. Many vital employees are also a key to the successful running of a cannabis business and need coverage as well.

Tax-Free Retirement for Cannabis Business Owners

Many Cannabis Business Owners are successful entrepreneurs. Just like everyone else, you want to save on taxes. There are very few options. You probably make too much to qualify for a Roth.

Well, we have the solution. There is a special type of life insurance that multi-tasks. It’s life insurance so it provides a death benefit. This same policy can also be a legal tax-shelter for your hard earned dollars.

This strategy protects your money from both stock market and tax risks. You can learn more about this tax-free retirement strategy. We use it ourselves and suggest you learn about it also.

A Real Life Example

One article recently exposed the plight of marijuana business owners. Derek Peterson is the founder and CEO of Terra Tech Corp. Mr. Peterson is an entrepreneur who has a large medical marijuana cultivation and retail facility in Oakland, California. He has spent considerable time developing network of cannabis cultivation and retail facilities in Nevada as well.

Mutual of Omaha declined his application for life insurance. They replied saying that:

“We cannot accept premium[s] from individuals or entities who are associated with the marijuana industry.”

This is a problem which many marijuana industry owners are encountering. Because companies are afraid that the government might penalize them, they avoid the issue until regulations change.

We know of just one company that will provide this life insurance product for marijuana business owners.

There is a catch because this insurer requires that the marijuana company itself is both the owner and the beneficiary of the life insurance policy.

Another very important feature to keep in mind is that this company is also one of the very few insurers which offer both “Accidental Death and Dismemberment Insurance” and Personal Disability Insurance to those who work in the marijuana industry.

If you are marijuana business owner and would like to learn more about finding marijuana business owner life insurance then call Marcan Insurance at (888) 987-8447. We are trying to respect the wishes of the company for discretion in this matter. Which is why we are asking you to call instead of just telling  you.

Life Insurance for Marijuana Industry Employees

Some of the many employment possibilities for workers in the marijuana industry include:

  • Farmers
  • Trimmers
  • Administration
  • Security
  • Bud Tenders
  • Seed Harvesters
  • Concentrate Processors
  • Web and Software
  • Retail Shop Owners
  • Courier and Delivery
  • Consultants
  • Cannabis Collaborations

A great many of these people have families who rely upon their income to survive. Income replacement is one of the primary reasons why employees want life insurance to protect their families from a catastrophic loss in addition to grief.

There are two approaches that you can take to find the life insurance coverage for marijuana industry employees. This includes:

• Group Life Insurance

• No Medical Exam Life Insurance

Marijuana Industry Group Life Insurance

The good news is there is one company who offers group plans to marijuana industry business owners and employees.

Marcan Insurance knows of 1 company which will offer marijuana industry workers a group plan covering anywhere from a single employee to the entire company.

However, there are a few requirements for employees to qualify for this coverage including:

  • Must have 30 hours of weekly work
  • Provide proof of hours through pay stub or W2

Complete the application online. Plus, acceptance is guaranteed subject to the above conditions.

This group plan will provide minimum life insurance coverage of $20,000. The cost is $49.95 per month. You also eligible to acquire an additional $150,000 to increase your overall life insurance face value to $170,000.

What about employees who work less than 30 hours per week?

There is another option available if your marijuana company does not want group coverage or you prefer individual coverage. This solution also applies to marijuana industry owners.

No Medical Life Insurance for Marijuana Business Owners and Employees

Marcan Insurance has another insurer which offers no-medical exam life insurance. Meaning you can avoid a medical exam as well as get great coverage. Again, respecting the company’s wishes for discretion.

You can choose face coverage amounts ranging from $10,000 – $50,000 dollars. The premiums you pay are guaranteed to age 100. Applicants must be from ages 18 -64.

All you have to do is answer ‘No’ to 7 easy questions to find approval.

The first 3 questions are:

  • Have you been diagnosed with HIV or AIDS?
  • Have you been declined for life insurance coverage in the past?
  • Have you been hospitalized in the past 90 days?

The remaining 4 questions will ask about the state of your health over the previous 5 years. The questions relate to heart disease, cancer, COPD and respiratory disorders and whether or not you have any substance abuse issues resulting in medical disorders.

You can quickly accomplish this application over the phone. You can also complete application online.

How Marcan Insurance Helps You Find Marijuana Industry Life Insurance

Marcan Insurance is an independent life insurance agency with access to over 70 of the top rated life insurers in the industry.


We work hard to keep track of any company that is ready to insure marijuana industry workers. Plus, we promise to update you on what becomes available as soon as we find out. Marijuana laws will continue to improve and so will life insurers.

We know that it’s hard to find life insurance for marijuana industry owners and those employed in the industry. Yet there are solutions that can help.

Call Marcan Insurance at (888) 987-8447 because we are happy to answer your questions. Let us help you find the plan that works best for your family.