“I don’t think you better light it in here, man.” – Cheech from the movie, Cheech and Chong’s Next Movie

Depending on your client/prospect, marijuana usage isn’t something financial professionals and insurance agents want them to talk about when having a conversation about life insurance. Where there’s smoke, there’s usually fire – and also typically, an automatic decline from insurance carriers nationwide.

Smoke and mirrors also don’t usually work well when applicants need to take a medical examination (blood and/or urine) to qualify for a certain amount of coverage. Marijuana/cannabis, smoking cigarettes and/or cigars, vaping, and even chewing tobacco and drinking cannabis-infused beverages can put up underwriting flags faster than the Surgeon General’s warning on the side of a pack of cigarettes.

"Hey, it's still smoking!" – Chong, Still Smokin

You get the point. You also understand some clients and prospects might not disclose their recreational usage of marijuana (or medicinal) upfront when applying for life insurance. Insurance agents don’t like surprises after a failed medical exam for marijuana usage leads to a declined application either.

Well, here’s another surprise. Based on state adoption of marijuana usage, some carriers have specific underwriting guidelines in place that may lead to a life insurance application approval based on certain standards. That’s why AIP Marketing Alliance, an Integrity Company, takes the time before the annual “unofficial” 4/20 holiday (Google it) to remind agents and consumers about how there could be some “flexibility” based on the standard underwriting factors (usage, age, health, etc.).

Before AIPMA clears the smoke on this topic, our company and employees do not endorse or condone the use of marijuana. Another disclaimer – each individual insurance carrier has specific underwriting guidelines, and not every person who uses marijuana is eligible to be approved for life insurance.

With the smoke cleared, AIPMA has reviewed most of our contracted carriers and developed a couple of guideline “charts” to help you potentially position life insurance products with clients whose lifestyle includes the use of marijuana or other tobacco products.

We have broken down the applicable insurance carriers by recreational and medicinal usage with the usage/factors and assigned underwriting classes for each one. Some carriers also consider whether the applicant “admits” to usage – as for some, this admittance is seen as a positive for that selected carrier.

Now let’s get back into the “why” of this message by sharing some Flowhub statistics about the current state of marijuana in the United States.

• Medical marijuana is now legal in 42 states and recreational use is legal in 24 states.
• 64% of consumers use cannabis to relax (reduce anxiety, stress relief, pain management, improve sleep quality); 14% use cannabis to help them exercise; 16% use as a sleep aid.
• 79% of Americans live in a county with at least one dispensary, and 74% of Americans live in a state where cannabis is legal for either recreational or medicinal use.
• California has far more dispensaries than any state: 3,659 at the time of this analysis, more than double the amount in the second-highest ranking state. A quarter of all marijuana dispensaries in the U.S. are in California, and nearly all Californians (99.5%) have a dispensary in their county. Los Angeles County alone has more dispensaries (1,481) than any state other than California itself.
• The US cannabis industry is expected to reach almost $47 billion in 2026.
• According to BDSA, beverages make up nearly 1%-dollar share of all cannabis sales, totaling $54.6 million in sales in Q1 2025, with an overall increase of +15% between Q1 2025 and Q1 2024. Though states like Michigan and Ohio grew by 112% and 79%, respectively.

AIP Marketing Alliance shares the Flowhub website as a resource for insurance agents and financial professionals selling life insurance products as the site shows what states and areas have the highest concentration of marijuana/cannabis usage. Marijuana usage, while down in numbers, is still impacting consumers and their ability to get life insurance.

If you would like the AIPMA Marijuana Guidelines document, please contact our Business Development team at (800) 783-5206, Press #2 or marketing@aipma.com. Our team updates this document on an annual basis, but note, underwriting guidelines for each carrier can change at any time. We also can assist you with potential carriers based on your client’s situation.

We are #TheRightMIXin26 for independent insurance wholesalers and agents. 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 supporting 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 lead programs, access to IntegrityCONNECT’s technology, 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).