Thankfully, cannabis business life insurance approvals are finally possible! Wow, what a journey this has been and will continue to be for those who make a living in the Cannabis industry. It has been a sad state of affairs for those in the business to be caught between the states who have made it a legal business and the feds who have put fear in the financial world, from banking to life insurance.

Are Cannabis business life insurance approvals possible?

I know there is hope that the States Act will bring some relief. It has already cleared a bipartisan committee by a wide margin. It seems almost certain it will pass the house and likely the senate. Even President Trump has indicated he likes it. At least there is bipartisan agreement on pot, huh?

But change may not be quick at least on the life insurance side. Life insurance underwriting is notoriously slow to change. Underwriting manuals will have to be rewritten after actuarial studies have been done and while a few locked and loaded life insurance companies will jump on the opportunity, the majority will move at about the pace of rewriting the Bible by hand.

This European Company Can Get it Done

But, there really hasn’t been any reason to wait for either business or personal cannabis business life insurance approvals. Lloyds of London, one of the world’s premier business life insurance companies, has been willing to write business key man, buy/sell and loan collateral life insurance since states started legalizing Cannabis.

It’s kind of logical when you think about it. They’re from London and frankly don’t care what the feds say. So they have been on board for up to $100 million of business life insurance for years.

And there is one  life insurance company (yes 1 out of 2000), that has been willing to write personal life insurance for those who own or work in cannabis related businesses. While they have avoided business life insurance they have cleared the way for families to be protected in spite of family income coming from pot related jobs.

That’s great news when you consider that all that has been available in the past is guaranteed issue life insurance, This, of course, was a lousy value at best, and very limited – it only offers low amounts and only to those from age 40-60. With the 1 in 2000 company, you can get what you need for your full family protection and age is not a factor. I suspect that this company will be the first to offer traditional business life insurance policies when the States Act is signed into law.

Bottom Line

If you have been denied life insurance, or forced into expensive and minimal products, because of your affiliation with the legal cannabis business, call or email me directly. My name is Ed Hinerman. Let’s talk.