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6 Ways Marijuana Use Affects Your Insurance

By U.S. News & World Report

As U.S. marijuana laws change, the insurance industry is adapting on a state-by-state basis. Cannabis is legal in some form in 29 states and the District of Columbia, according to the National Conference of State Legislatures.

But it doesn’t matter if you use marijuana for recreation or medicine, the production, possession or use of this Schedule I substance is still against federal law. This head-scratching conflict is sure to bring quandaries for insurers and confusion for policyholders wading through muddy legal waters.

To help clear up the confusion, here are six ways marijuana use affects different types of insurance.

[Read: Can You Deduct Alternative Medicines on Your Taxes?]

Auto insurance. Getting caught driving while high is no different than driving while under the influence of alcohol — there’s no separate law or violation for it. Even though there isn’t an equivalent breathalyzer test for cannabis, you could be charged with a DUI and see a huge spike in your auto insurance rate or get dropped altogether.

Home insurance. If you own marijuana and it’s stolen or gets damaged from fire or water in your home, are you covered? The answer isn’t simple. Some home insurers protect you from marijuana loss in states where it’s legal for both medical and recreational use. It may be viewed just like any other belonging, with coverage up to your policy limit for certain perils, such as fire, theft and windstorms.

Even pot plants that you grow can be covered — if you have a state license and don’t exceed legal limits. However, how much you can claim for missing or damaged marijuana is unclear and could require a negotiation with your insurer.

In states with low possession limits (like a couple of ounces) insurers are less likely to push back and fight marijuana-related claims that could be less than $1,000.

[See: 10 Costs Homeowners Insurance Doesn’t Always Cover.]

Renters insurance. If you own marijuana and have renters insurance, you’ll get protection similar to home insurance. As long as it’s legal, you may be covered for policy perils up to your limits for personal belongings.

Health insurance. If you use marijuana for medicinal purposes and want to claim the cost on your health insurance or buy it using your health savings account, or HSA, you’re out of luck. Because, as previously mentioned, cannabis is a Schedule I drug and hasn’t been approved by the U.S. Food and Drug Administration, health insurers don’t reimburse users.

[See: How to Pick a Health Insurance Plan.]

Life insurance. Smoking cigarettes is a major red flag for life insurers who know it causes one in five deaths in the United States per year, according to the U.S. Centers for Disease Control and Prevention. An insuranceQuotes study found that smokers can pay as much as three times the amount nonsmokers pay for term life.

But some insurers treat marijuana differently and may not consider users as risky as tobacco users. Since life insurance rates are largely based on your age and health status, the underlying medical reasons (such as for symptoms of multiple sclerosis or cancer) for why you use cannabis in the first place are what insurers may give the most weight.

However, some life insurance carriers may treat marijuana smoking on par with cigarette use. So how it affects your rate depends on the company and how frequently you smoke pot.

Business insurance. If you run a legal business in the marijuana industry, insurance for liability or workers’ compensation may be difficult to get, or come with a high premium, because the industry is so new. Carriers don’t have much claims history to draw from in order to fully understand their exposure to risk.

However, once carriers have more data and confidence in the legal ramifications of defending marijuana business policies, more companies are likely to enter the market and offer competitive rates.

If you use marijuana or work in the business legally, make sure your insurance agent or company knows, so they can help protect you. If you don’t disclose your situation or have the right coverage, you might have an unexpected premium hike or loss.

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6 Ways Marijuana Use Affects Your Insurance originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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