Cannabis use and the impact on your Myriad policy

Cannabis use and your client's Momentum Myriad policy

The Constitutional Court has recently decriminalised private use and cultivation of Cannabis, also known as Marijuana, by adults in South Africa. As a result we are seeing many ‘weed’ trees growing in private gardens around our neighbourhoods. But what does this mean for your Myriad policy?

The use of Cannabis for medicinal or recreational purposes is still a grey area for many insurers. It is important that you know how your Myriad policy is affected by your use of Cannabis. Below we have put together a list of Frequently Asked Questions to help you understand how Cannabis use affects your Myriad policy (or click here for a PDF version of the information).

At quote stage

Q: Do I quote smoker rates if my client discloses Cannabis use at quote stage (whether for medicinal or recreational purposes), i.e. they don’t smoke any tobacco products but smoke Marijuana?

A: Momentum Myriad defines smoking as the use of traditional tobacco cigarettes/cigars, e-cigarette/vaping and/or hubbly bubbly. Therefore, if your client does not use any of the above mentioned products, but smokes Marijuana, they are defined as a non-smoker and must be quoted non-smoker rates.

At application stage

Q: Will my client’s application be declined if they disclose the use of Cannabis as a recreational drug?

A: No, your client will be requested to complete the Substance Use Questionnaire to check frequency, previous usage, methods of usage and whether the client has had any complications or medical treatment(s) because of Cannabis use.

During underwriting

Q: What is Momentum’s underwriting approach with regards to Cannabis use?

A: Momentum will consider the information provided on the Substance Use Questionnaire, the client profile (age, occupation, income and marital status) and the reason for Cannabis use to determine the underwriting terms.

  • If Cannabis is used for medicinal purposes (inhaled or ingested), it is rated according to the medical impairment for which it is used.
  • If Cannabis is used recreationally, the client will be categorised as a light, moderate or heavy user. They may get standard rates, loaded rates or declined cover. E.g. a 35 year old professional who smokes Marijuana once a week will likely qualify for standard rates.

If already a Myriad policyholder (in-force policy)

Q: What if my client starts using Cannabis for recreational or medicinal purposes after the policy has been issued. Do they need to inform Momentum?

A: No, they do not need to inform us. This is because Myriad clients who only smoke Marijuana are not considered as smokers.

At claim stage

Q: If the client did not disclose the use of Cannabis, will Momentum repudiate a claim if they come across a positive Cannabis test done before the policy became in-force; even if the claim is not as a result of Cannabis use?

A: No, a positive Cannabis test on its own will not result in repudiation. However; this information could trigger questions about why the client was tested for Cannabis? E.g. did the client fail to disclose all their drug habits or mental health history? The information from such questions could result in repudiation. Full disclosure at application stage remains vitally important, and it remains the client’s responsibility to answer all questions truthfully to avoid complications at claim stage.

Q: What happens if the claim event was caused by the client’s behaviour while under the influence of Cannabis?

A: We do not have an explicit exclusion for claim events that are influenced by the client’s behaviour under the influence of alcohol and/or drugs. However; all standard exclusions will apply. E.g. if a client commits a crime of stealing while under the influence of Cannabis and becomes disabled in the process, we will decline the disability claim because of this act and not because the client was under the influence of Cannabis.

It is important that you disclose the use of Cannabis upfront. This will allow Momentum to make an informed assessment and offer terms accordingly. If you have any further questions in this regard, please contact us.

The importance of choosing the right advisor

The importance of choosing the right advisor

Of all the important decisions that you need to make in your life, choosing the right advisor is right up there. Your relationship with your advisor is a long-term one, so you need to ensure that you can build a strong trust-relationship with your advisor.

At ANF Brokers we strive to build strong relationships with our clients, to exceed their expectations and put their needs first. We offer objective, unbiased independent advice in order to ensure that your dreams and assets are safeguarded by a bespoke financial portfolio.

Your financial plan and security are so important to us that we consider not only the cost of a product, but the fine print that goes alongside it – we help you choose the best possible cover based on your budget, needs and goals.

We also utilize time-tested investment strategies designed to meet your needs and protect you against volatile markets. Having a diverse portfolio ensures that you are protected against circumstances which are beyond control.

Our long-term view of risk insurance and investment strategies helps to ensure that you have peace of mind, even after retirement because life’s little surprises never rest, even if you do!

Why do you need a plan?

The importance of a plan

Planning for the future is a lot like planning a road trip – you need to:

1. Decide where you want to go and what you want to do

● Your road trip destination is your life’s goal – perhaps you want to retire by 55 or you want to ensure that your transition into retirement will be financially comfortable

 

2. Pick the best season for your trip

● Picking the right season is a lot like choosing the right investment vehicles to ensure that you have that nest-egg growing in value for your retirement

 

3. Ensure your vehicle is ready for the trip, book accommodation and decide on a budget

● You have to know how you’re going to navigate each month – from putting funds away

in savings to paying off your debt and having some left for life’s surprises

 

4. Be prepared for hiccups along the way

● There are so many things that can go wrong on a road trip – bad weather, flat tyres, someone breaking into your car and stealing your valuables… This is exactly what life is like: we plan and save for our retirement but forget that there might be unpleasant surprises along the way. unpleasant surprises along the way.

 

Cancer, permanent disability, the death of a loved one, loss of income… So many of us think “That won’t ever happen to me!” and we start our lives without a proper plan in place, only to lose it all when disaster strikes.

 

Planning for the future is not only essential, but it is an intricate and delicate process. This is why we strive to offer each of our clients a bespoke service, ensuring that we take their needs, circumstances and goals into consideration when making recommendations. You wouldn’t trust a chef to provide you with medical care – don’t put your financial future in jeopardy by trying to do it all on your own, let us guide you and help you plan for your life’s journey.