How Can A Ganjapreneur Get Life Insurance?

Media / Blog

How Can A Ganjapreneur Get Life Insurance?

Prev

Dating and Money

October 24, 2015

So, what the heck is a 'ganjapreneur' anyway? If you have nothing great to do for a few hours and want to laugh out loud in a real way besides what you write on a text message, take a gander here http://www.ganjapreneur.com/marijuana-slang/ where you can see just about any marijuana slang you could ever imagine. Ganja, is classically defined as another widely-accepted name for cannabis. The term ganja is often attributed to Rastafarian culture, but it is in fact the Hindi word for hemp, introduced to Jamaica by Indian indentured servants. Lately, its usage in western society has become incredibly mainstream and, in some cases, grossly over-commercialized. Thus, the ever increasing ganjapreneur are those that start business in, on, or around the substance known as marijuana.

As somebody who deals in life insurance, your first instinct is to tell yourself that nobody who smokes marijuana or even remotely puts it in his or her body is ever going to have a chance to get life insurance. In fact, even if they don't smoke any marijuana, what would be the chances of them getting approved for a buy sell or key man life insurance policy if they are an all cash business? Even if you are in the several states where marijuana is legal or almost half of the country where some form of medical marijuana is legalized as well, how will you convince the insurance company that you would be a low risk profile for life insurance? What a difficult dilemma for the fast growing ganjapreneur in America.

What's funny about this topic is that I'll bet every person has known someone in their life who applied for life insurance and this scenario came up during the application. The person is filling out the application and the question comes up about whether or not they smoke. The new applicant asks, "Do they mean cigarettes or some other type of substance?" After the insurance agent politely chuckles under their breath, they reply with, "They mean any type of smoking." Then your prospect responds with, "I'll sign up for this life insurance but it will take me a few weeks before I can take a medical exam. I have never smoked in my entire life." Any good life insurance agent can put two and two together, but what can you do to prepare yourself if you are a ganjapreneur?

For most general marijuana smokers, you'll likely have to classify yourselves as smokers as you would someone who smokes cigarettes. Depending on the insurance company, they would pay the table rates of what a smoker would which could double their rates. There are still some carriers that say marijuana is illegal everywhere and thus will not underwrite a marijuana smoker so do your homework in advance. Since insurance carriers are varying more widely these days, you won't get preferred rates if you admit to smoking marijuana even recreationally, but you could still get a standard non tobacco rates for only having a 'celebratory joint' here and there. Sometimes, insurance carriers call these people social marijuana smokers. Go figure that!

For ganjapreneurs, it is going to be important to keep excellent books and records and despite the fact that your local bank may not bank you, there is no reason to not legitimately keep a balance sheet, profit and loss, and pay taxes for your tax return. If you want life insurance, a buy-sell agreement, disability insurance, or key man insurance, you are going to have to prove some legitimate books and tax returns to the insurance company.

What may have seemed like a joke in the past will become a big business in the future as more and more people smoke marijuana in the United States. It will pay to have an insurance agent who knows how ganjapreneurs work within this industry anywhere from those who directly sell marijuana to the person selling paraphernalia to the public. Having the right person on your side may make the different between getting a yay or nay from the insurance company!

Written by:
Ted Jenkin

Request a FREE No-Obligation Consultation: www.oxygenfinancial.net


If you would like to receive more information on making smart money moves for your future, be sure to contact us today!

Next

Should You Loan Your Girlfriend or Boyfriend Money?

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.