Life Insurance for the Marijuana Industry

The cannabis industry is one of the fastest-growing sectors in the United States, but it still faces unique challenges when it comes to financial planning and protection. While marijuana businesses continue to expand across cultivation, retail, testing, and manufacturing, many traditional insurance companies have been slow to support the industry. For professionals and business owners working in this space, obtaining life insurance coverage has historically been difficult — until now.

At Diversified Insurance Brokers, we specialize in helping high-risk and underserved markets find solutions where others say no. Our advisors partner with carriers who offer life insurance and disability coverage designed specifically for cannabis professionals and companies. Whether you’re an executive at a dispensary, a grow operation owner, or an investor in the industry, we can help you secure the coverage you need to protect your family, your business, and your financial future.

Why Life Insurance Has Been Hard to Get in the Cannabis Industry

Despite legalization in many states, marijuana remains federally restricted, which has discouraged many mainstream insurers from working with cannabis businesses. This leaves business owners and employees exposed, with limited access to financial protections that are standard in other industries. Even international markets like Lloyd’s of London have avoided offering life or business insurance for cannabis operations.

Without life insurance, cannabis entrepreneurs face higher risk. Family members may be left without financial protection, lenders may hesitate to provide funding, and businesses may struggle to execute buy/sell agreements or protect key employees. Recognizing this need, a handful of forward-thinking carriers have stepped in to provide solutions.

Specialized Life Insurance Solutions for Cannabis Professionals

Through strategic partnerships, Diversified Insurance Brokers can provide life insurance options tailored for marijuana industry professionals. These programs are built to address the unique risks and financial needs of cannabis-related businesses. Available solutions include:

• Key Person Life Insurance: Protect your company against the loss of a critical employee, executive, or owner. Provides death benefit protection to fund recruitment, training, and business continuity.
• Key Person Disability Insurance: Pays benefits if a key leader becomes disabled and unable to work, ensuring the business has resources to cover losses and adapt.
• Buy/Sell Coverage: Ensures smooth ownership transition if a partner dies, by funding buyout obligations without straining the company’s liquidity.
• Business Loan Indemnification: Protects lenders and investors by guaranteeing loan repayment in the event of a borrower’s death. This can also be supported with Business Overhead Expense Insurance to safeguard cash flow during a disability.

Unlike traditional insurance, many of these plans are simplified issue — requiring no medical exams, blood draws, or lab work. Applications can often be approved quickly, which is especially useful for businesses working under short timelines with investors or lenders.

Why Diversified Insurance Brokers?

As a family-owned, fiduciary insurance agency licensed in all 50 states, Diversified Insurance Brokers has decades of experience helping clients secure the coverage they need — even in high-risk industries. We work with more than 75 carriers nationwide and bring an independent, client-first approach. Our expertise includes life insurance, disability, long-term care, annuities, and more.

For the cannabis industry, we understand the unique roadblocks you face. From banking challenges to investor requirements, our advisors help you design a strategy that meets your personal and business needs. We also offer flexible premium options, including the ability to pay by credit card, which can be especially valuable for cannabis businesses without traditional banking support. For more guidance on complex underwriting, visit our High-Risk Life Insurance page.

Use Cases for Cannabis Industry Life Insurance

Entrepreneurs: Founders of cannabis startups often require life insurance to secure funding. Investors and lenders want assurance that loans or equity stakes are protected.

Executives: CEOs, CFOs, and other leaders carry knowledge and relationships critical to business success. Key person coverage ensures continuity in case of sudden loss.

Investors: Life insurance helps mitigate the financial risks of investing in cannabis-related businesses, creating stability and peace of mind.

Family Protection: Beyond business, life insurance provides peace of mind for families who rely on income from the cannabis industry. For those who may not qualify for standard coverage, Life Insurance Alternatives can provide valuable solutions.

How to Get Started

Securing life insurance in the cannabis industry requires specialized knowledge and access to the right carriers. At Diversified Insurance Brokers, we’ll review your business structure, assess your personal and company needs, and match you with the best available options. Most applications can be completed quickly and without medical exams, making the process straightforward and efficient.

To get started, you can request a free quote online, schedule a consultation with one of our advisors, or call us directly for personalized guidance.

Book a Free Consultation

Talk with an advisor who understands the cannabis industry and knows how to navigate its unique challenges. We’ll design a plan that protects both your family and your business.