Traditionally, life insurance carrier underwriting departments would automatically decline clients whose lifestyles include smoking cigarettes, cigars, and marijuana/cannabis products. In today’s world, some insurance carriers are adapting to the legalization of marijuana to the point where they are showing some flexibility for smokers based on the life insurance product.

According to the DISA website, 24 states currently have legalized marijuana with many more states allowing medical and/or decriminalized marijuana – and a few more states allowing CBD with THC only. Only four states currently maintain marijuana as illegal – Idaho, Wyoming, Kansas, and South Carolina – as of March 10, 2025.

Here’s a few more growing statistics about marijuana usage according to Flowhub.

• 47% of Americans have tried cannabis.
• 79% of Americans live in a county with at least one dispensary.
• There are 440,445 full-time equivalent jobs supported by legal cannabis.
• The US cannabis industry is expected to reach almost $45 billion in 2025.
• More than 1 in 3 women over 21 consume cannabis.
• Together, Gen Z and Millennials make up 62.8% of all US cannabis sales and 70.8% of all Vapor Pen sales based on data from Headset
• Cannabis added approximately $115.2 billion to the economy in 2024.
• Support for legalizing cannabis hit a record 88%.
• Ranks of women and minority cannabis executives are rebounding.
• 14% of consumers use cannabis to help them exercise.
• Cannabis tax revenue is $20 billion, nearly double that of alcohol.

Located in Michigan, AIP Marketing Alliance, an Integrity Company, has witnessed the growth of marijuana dispensaries throughout our state, which has legalized marijuana. According to Pew Resource Center, 942 dispensaries currently operate in Michigan to rank fifth in the United States. The top five is rounded out by California (3,659), Oklahoma (1,405), Florida (1,233), and Colorado (1,054).

Based on the above statistics, our team understands the impact marijuana has made on the life insurance industry. With this in mind, AIPMA has reviewed multiple life insurance carriers and created a marijuana underwriting tips sheet featuring carriers and their underwriting guidelines regarding marijuana usage (recreational and medical).

Our team also has developed a tobacco/cigar smoking chart molded with the same philosophy. Why? The U.S. cigar market is projected to reach $14.0 billion in 2025 with each person expected to consume 6.9 cigars in 2025. This chart also considers the amount of usage.

As a reminder, each insurance carrier’s underwriting department has different qualifications and not every person is approved for life insurance – especially if marijuana, cigar smoking, or tobacco usage is part of their daily lifestyle. AIPMA created these charts for guidance only.

If you are interested in receiving these charts, you can contact AIP Marketing Alliance’s Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com. Our life insurance professionals also can assist with creating illustrations and positioning potential products to assist you during a client appointment.

For more than 40 years, AIP Marketing Alliance (AIPMA), an Integrity Company, serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. NOT AFFILIATED WITH OR ENDORSED BY THE GOVERNMENT OR THE MEDICARE PROGRAM.

AIP Marketing Alliance is committed to STRIVE in ’25 as we support our independent insurance wholesalers and agents. Visit our blog on aipma.com to stay informed on these upcoming launches and learn why wholesalers nationwide choose AIPMA as their distributor for selling life insurance, annuities, long-term care insurance, final expense, and much more. Ask about our lead services, myAIP CRM platform with customizable recruiter portal, and online tools/resources designed to grow your business. The difference is personal.

AIP Marketing Alliance, an Integrity Company, has developed this electronic communication for informational and educational use only. Be advised, AIP Marketing Alliance, Inc. does not provide legal advice, tax advice, or guidance on issues involving securities laws, insurance laws nor securities or insurance regulations. This material should not be relied on as providing any such advice or guidance to either agents or retail consumers. Within this communication, AIPMA shares links for usage as information only. This content should not be interpreted as solicitation to purchase life insurance, annuities, or other products or as advice designed to meet your clients’ specific needs. Content involving fiduciary, tax, or legal advice should be directed to your legal, tax, and financial professionals for specific advice or product recommendations. AIPMA will not accept any legal liability resulting from any use of 3rd party material(s).