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The odd THC gummy or zoot? Standard life insurance rates still available

Journalist: Protection 1st, Freelance

ended 09. October 2023

It is often assumed that insurers will look down upon any kind of drug taking, however mild, and will reject borrowers who admit to it, or have it on their GP's report, for any kind of insurance immediately.

But brokers and protection specialists have alerted borrowers to the fact that this is not actually the case and that standard life insurance rates are still available for recreational drug users. 

AIG, for example, offers standard non-smoker rates to those who still smoke cannabis if no tobacco is ingested. They will of course look at other areas that could be linked such as mental health and depression, amount of usage per week, but standard life rates are there if you are otherwise healthy.

In short, you will not be rejected outright if you take the odd THC gummy or spark up a zoot on the weekend.

However, for other hallucinogenic drugs or cocaine and other ‘party’ drugs, there is a 3-6 year window before life cover will be considered with an increased premium.

Brokers also said that many borrowers who have weaned themselves off cigarettes and onto blueberry-flavoured vapes are still required to pay full smoker rates — and feel this 50% loading is grossly unfair.

Dave Corbett, Head Of Protection at Protection 1st commented: "It's fair to say that many of us have experimented with drugs of some kind, including alcohol, when growing up. And most of us still find ways to medicate ourselves after a long day or when we want to escape reality for a bit, albeit at my age that’s now with a glass of the red stuff. But there are lots of inconsistencies within insurance when it comes to our habits. For example, it's great to know then that you can pop a THC gummy on a Friday and it potentially won’t affect your life cover. Yet many insurers will still consider those who vape as smokers. Ultimately, what’s more dangerous?"


7 responses from the Newspage community

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Dave Corbett
Head Of Protection at Protection 1st
It's fair to say that many of us have experimented with drugs of some kind, including alcohol, when growing up. And most of us still find ways to medicate ourselves after a long day or when we want to escape reality for a bit, albeit at my age that’s now with a glass of the red stuff. But there are lots of inconsistencies within insurance when it comes to our habits. For example, it's great to know then that you can pop a THC gummy on a Friday and it potentially won’t affect your life cover. Yet many insurers will still consider those who vape as smokers. Ultimately, what’s more dangerous?
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Darryl Dhoffer
Founder at The Mortgage Geezer
Being transparent from the outset about any medical history or "recreational habits" is a must when it comes to life insurance, especially given that most insurers will await GP reports before assessing and offering terms, while some will insist on an up-to-date screening/medical, particularly if there are issues on any medical background. This alone could highlight any undisclosed "recreational drug" usage, which could decline a case dependent on the insurer. So honesty is the best policy when it comes to completing a questionnaire about your habits and vices. People should remember that brokers do not judge applicants, we simply want to ensure we get the right insurance set up for them and that they have the relevant cover.
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Michelle Lawson
Director at Lawson Financial
i think this is where common sense needs to be applied. I have had applicants that have 'dabbled' with drugs as teenagers or in their early 20s as you don't think of future implications with anything. I think more questioning around whether this was a habit or just occasional or recreational use could detail this further rather than a 3-6-year exclusion. Drugs and alcohol are both an addiction but are treated completely differently.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Many insurers are not too concerned about Cannabis usage, with this often not affecting the underwriting at all. Other drugs are an application stopper though, but I would imagine this is the most untruthfully answered question on insurance applications. No client ever seems to say yes to recreational drugs in the last 10 years question which cannot be right based on what you see in city centres across the country on Friday and Saturday nights. Insurers' treatment of vapes can vary. A lot of insurers ask about nicotine use in the last 12 months. So if you have been non-nicotine vaping for over 12 months then you should be fine to get non-smoker protection rates.
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Simon Bridgland
Director at Charwin Private Clients
I can count on one hand the number of insurance applicants from the last 25 years, who have had the honesty to admit to previous or current drug use. It does depend if there is any 'health baggage', but if it's a distant past and no health issues then the cover has been given, rated or otherwise. Current users, I cannot say. I guess the clean streets of Canterbury are more holy than I first thought... wait a minute, my clients are nationwide. Well then the UK is a clean living island! Either that or it's full of fibbers. Drug users have always been there. If your granny was swinging in the sixties, then there's a good chance she was exposed to/inhaled. Grandad was a mod 'speeding' on his Vespa. I say no more. Many more than would admit to it have had a colourful past, did they admit it on a form, no. So unless testing at the application stage changes, there will always be doubt and doubt costs a bigger premium.
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Ben Tadd
Director at Lucra Mortgages
I suspect the actuaries’ numbers suggest vaping is something a lot of ex-smokers do to kick the smoking habit but end up lapsing and going back to the bad stuff. Of course, on an individual level, that’s not fair, as those who don’t relapse are pardon the pun, being tarred with the same brush. Equally, it’s also unfair that everyone at 90% LTV with a credit score under 700 gets declined for a mortgage, even though only a small proportion of people will go on to default on their payments. If there was a "clear the air" on recreational drugs, the argument would just shift to lying about your weight or drinking habits. The bottom line is that it's entirely reasonable to ask and expect people to tell the truth. It's also to be expected that some people won't. So, for there to be some authentication carried out by insurers is entirely reasonable. Is the current checking process perfect? I doubt it. But is it proportionate to go as far as cutting people open to confirm? I doubt it.
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David Robinson
Co-Founder at Wildcat Law
A number of insurance companies take a very pragmatic approach to drug use, particularly for matters that involve large levels of cover. Yes they will throw the kitchen sink at an application in terms of GPR's, full meds etc but as most of these clients will typically have expensive doctors on Harley Street, this is often less problematic than an "ordinary" application requiring a report from an NHS GP. As well as advisers who specialise in this area, there are a number of firms now that will offer specialist assistance to advisors to help them place the application with an insurer that will assist. This is a prime example of where "cheaper" is definitely not "better".