Underwriting Shorts: Marijuana, Vaping & Nicotine – What Advisors Need to Know

When it comes to life insurance underwriting, the world of marijuana and nicotine use isn’t as black-and-white as it used to be. What once meant an automatic decline or a hefty smoker rating now has shades of gray—and, for clients, that means opportunities.

In a recent Underwriting Shorts conversation, I sat down with Ken Turscak, Chief Underwriter at Cavalier Associates, to break down how carriers are treating marijuana, vaping, and nicotine use in today’s marketplace. Here are the highlights every advisor should know:

Marijuana Use: Occasional vs. Daily

Occasional Use

• Many carriers today will still offer preferred best non-tobacco rates for clients who use marijuana once or twice a week.
• The key is disclosure. Hiding use is riskier than being upfront.

Daily Use

• Not long ago, daily marijuana use was an automatic decline.
• Today, some carriers may offer standard non-tobacco rates for daily users, particularly for applicants over age 30–35.
• Younger daily users, however, still raise red flags.

Recreational vs. Medicinal

• Carriers generally don’t differentiate based on state laws. Whether marijuana is legal or not in a client’s state doesn’t matter.
• What does matter: documentation. If the use is medicinal, it must be supported with a medical marijuana card or APS notes. Otherwise, it’s considered recreational.

Method of Use

• Most carriers treat smoking, vaping, and edibles the same.
• A few carriers, however, differentiate between combustible and non-combustible forms. Smoking or vaping may trigger smoker rates, while gummies and edibles may be treated as non-tobacco.

Nicotine & Tobacco: Expanding Beyond Cigarettes

Cigarettes

• Still the clearest category: smoker rates apply.
• A 12-month clean period is required to qualify for non-smoker rates.

Cigars, Chew & Pipes

• These forms of tobacco can often be classified as non-tobacco with select carriers such as John Hancock, Lincoln Financial, and Prudential.

Vaping

• Once treated favorably, vaping is now almost universally rated as tobacco.
• There’s one exception: Securian, which may allow non-tobacco rates if very specific criteria are met (no combustible tobacco use in 10 years, verified lab testing, etc.).
• For clients who vape, the amount of nicotine can vary—something advisors should explore with their underwriter.

Nicotine Alternatives (Pouches, Patches, Lozenges, ZYN)

• Products like ZYN are generally treated as non-tobacco with Hancock, Lincoln, and Prudential—as long as the client discloses usage.

Quit-Smoking Programs

• John Hancock offers a unique program where clients can start at smoker rates but receive non-smoker rates within three years if they test negative for nicotine and sign an amendment.

Key Takeaways for Advisors

1. Disclosure is everything. Clients often fear admitting to use, but today’s underwriting environment is more flexible than in the past.
2. Not all carriers are alike. Carriers differ in how they view daily marijuana use, vaping, and alternative nicotine products.
3. Product selection matters. By matching a client’s lifestyle to the right carrier’s guidelines, advisors can secure far better outcomes.
4. Stay current. Underwriting guidelines shift quickly. What was a decline five years ago could now be a standard offer.

Final Thoughts

The underwriting landscape around marijuana and nicotine use has evolved significantly. Advisors who stay informed—and partner with experts—can turn what clients fear might be a roadblock into an opportunity for competitive coverage.

At Cavalier Associates, we stay ahead of these underwriting shifts so you can deliver the best solutions for your clients. If you have a case involving marijuana, vaping, or nicotine use, reach out to us. Chances are, there’s a path to favorable rates.