Cannabis Business Owners and Employees Can Finally Access Life Insurance

Can cannabis business owners buy life insurance using cannabis income?

Yes. For years, many cannabis business owners, executives, and employees were told “no” when they tried to buy life insurance, annuities, long-term care solutions, individual long-term disability coverage, or certain employee benefits.

Not because they did not have income.

Not because they did not need protection.

And not because they were bad applicants.

The problem was that their income came from the cannabis industry.

Even as cannabis businesses operate legally under many state programs, cannabis remains a complex industry for financial services. In April 2026, federal officials moved certain FDA-approved marijuana products and state-licensed medical marijuana into Schedule III, while broader marijuana rescheduling remained subject to further DEA proceedings; the change did not erase every federal, banking, tax, or compliance challenge for cannabis-related businesses. Federal Register

That has left many cannabis business owners and employees in a frustrating position: they could earn a living, build a company, hire employees, pay taxes, and support their families, but still struggle to access basic financial protection.

Gen3 is excited to help change that.

Through our close partnership with Evergreen, the insurance industry’s first cannabis-focused life insurance, annuity, long-term care insurance, and group benefits platform, Gen3 can now help agents and clients access insurance solutions designed for the real-world needs of cannabis professionals. Evergreen’s platform is available at cannabislifeinsurance.com.

What changed for cannabis professionals?

The biggest change is simple: eligible cannabis business owners and employees now have access to insurance solutions that understand cannabis-derived income as a source of funds.

That matters because a person’s source of funds is a normal part of many insurance and financial product reviews. For people outside the cannabis industry, income from a business, paycheck, sale, bonus, or investment account may be straightforward.

For cannabis professionals, it has often been more complicated.

Evergreen was built to solve that problem.

By working with cannabis-aware insurance carriers and distribution partners, Evergreen helps create a path for cannabis business owners, executives, employees, and their families to explore products that were often unavailable or difficult to place through traditional channels.

Through this partnership, Gen3 is excited to bring these solutions to agents and clients who serve the cannabis industry.

What types of insurance and financial products are available?

Through Evergreen and Gen3, eligible cannabis business owners and employees may be able to access several important planning tools.

Life Insurance

Life insurance can help protect the people and businesses that depend on you.

For cannabis business owners, life insurance may be used for:

• Family protection
• Key-person coverage
• Buy-sell agreement funding
• Business loan protection
• Executive bonus planning
• Estate planning
• Partner protection

For employees, life insurance can help provide financial support to loved ones if the unexpected happens.

Evergreen’s life insurance solutions are designed for cannabis business owners, employees, and families navigating the unique challenges of the industry. Learn more about Evergreen life insurance.

Can cannabis business owners use life insurance for key-person coverage?

Yes, eligible cannabis business owners may be able to use life insurance for key-person coverage.

Key-person coverage is designed to help protect a business if an owner, founder, executive, or other essential team member passes away. In a cannabis business, that person may be the license holder, operator, lead grower, CFO, sales leader, or someone else the business cannot easily replace.

The money from a life insurance policy can help the business manage the financial shock, keep operations moving, recruit a replacement, pay debt, or buy time during a difficult transition.

This is especially important in cannabis, where licensing, operations, compliance, and banking relationships can already be complex.

Can cannabis business partners fund a buy-sell agreement with life insurance?

Yes, eligible cannabis business partners may be able to use life insurance to help fund a buy-sell agreement.

A buy-sell agreement is a plan between business owners that explains what happens if one owner dies, becomes disabled, exits the business, or needs to sell their share.

Life insurance can provide the money needed to buy out a deceased owner’s share, helping protect the business, the surviving owners, and the owner’s family.

Without proper funding, the business may be forced to rely on emergency cash, loans, or rushed decisions at the worst possible time.

Evergreen has published on the importance of life-insurance-funded buy-sell agreements for cannabis businesses, including how they can support business continuity, fair payouts to heirs, and peace of mind for owners and families. Read Evergreen’s buy-sell planning article.

Are annuities available for cannabis business owners and employees?

Yes, eligible cannabis business owners and employees may now have access to annuity options designed with the cannabis industry in mind.

An annuity can help turn money you have earned into a more predictable financial future. Depending on the product, annuities may be used to:

• Earn guaranteed interest
• Protect principal from market losses
• Create future retirement income
• Generate lifetime income
• Diversify personal savings outside the business

This can be especially valuable for cannabis professionals who may have had limited access to traditional financial planning tools.

Evergreen’s annuity options are designed to help cannabis professionals use their earnings to build a more secure future, including guaranteed growth and income-focused strategies. Learn more about Evergreen annuities.

What about long-term care planning?

Eligible cannabis business owners and employees may also be able to explore asset-based long-term care solutions.

Long-term care is the type of help someone may need if they can no longer handle basic daily activities on their own, such as bathing, dressing, eating, or moving around safely.

The cost of care can create a major financial burden for families. Asset-based long-term care products can help protect savings, business assets, retirement accounts, and family wealth from being drained by future care costs.

For cannabis business owners, this can be especially important because much of their net worth may be tied up in the business.

Evergreen’s long-term care solutions are built for individuals in the cannabis industry and are designed to help protect people from the financial impact of future care needs. Learn more about Evergreen long-term care insurance.

Can cannabis business owners and employees get individual long-term disability coverage?

Yes, eligible cannabis business owners and employees may also be able to explore individual long-term disability coverage.

This is important because life insurance helps if someone passes away, but disability coverage can help if someone is still alive but too sick or injured to work.

For cannabis business owners, long-term disability coverage may help protect personal income if an illness or injury keeps them away from the business. For employees, it can help replace a portion of income so they can continue paying for everyday expenses like housing, food, utilities, childcare, and medical costs.

Individual long-term disability coverage may be especially important for cannabis professionals because many people in the industry do not have traditional employer-sponsored benefits, and many owners have income that depends heavily on their ability to actively run the business.

Gen3’s broader product suite includes life insurance, annuities, long-term care, and disability solutions, and through the Gen3 and Evergreen relationship, cannabis professionals now have a better path to explore coverage options that may have been difficult to access before. Learn more about Gen3 disability carriers.

Are employee benefits available for cannabis businesses?

Yes. Cannabis businesses may also be able to offer group benefits to employees through Evergreen’s platform.

These benefits may include options such as:

• Group life insurance
• Accident coverage
• Cancer coverage
• Sickness coverage
• Hospital indemnity coverage
• Disability coverage
• Critical illness coverage
• Other supplemental benefits

Offering benefits can help cannabis employers attract and retain talent in a competitive market. It also shows employees that the business is investing in their well-being, not just their labor.

Evergreen’s platform includes group benefits for cannabis-related businesses, including group life, accident, cancer, sickness, hospital indemnity, disability, and critical illness insurance. Learn more about Evergreen group benefits.

Why has insurance been so difficult for cannabis businesses?

Cannabis businesses operate in a unique environment.

Many are legal and licensed at the state level, but cannabis has still faced federal-level restrictions, financial institution reviews, banking limitations, tax complications, and compliance concerns. Section 280E has historically created major tax challenges for businesses tied to Schedule I or II controlled substances, although recent federal rescheduling changes may affect businesses that no longer fall within those categories. IRS Taxpayer Advocate Service

FinCEN guidance has explained how financial institutions can serve marijuana-related businesses while meeting Bank Secrecy Act obligations, but it also notes that the decision to open, close, or decline an account depends on each financial institution’s own risk review. FinCEN guidance

In plain English: some companies will work with cannabis businesses, but most will not.

That is why the right distribution partner matters.

Gen3 and Evergreen help agents and consumers find solutions built for the cannabis market, instead of trying to force cannabis clients through traditional channels that may not understand the industry.

Why is Gen3 partnering with Evergreen?

Gen3 is excited to offer these solutions to agents and clients through our close partnership with Evergreen.

Gen3 already works with agents, agencies, advisors, IMOs, FMOs, and BGAs across life insurance, annuities, long-term care, disability, and related product areas. Learn more about Gen3 Advisor Group.

Evergreen brings cannabis-specific expertise, carrier relationships, and a platform focused on solving one of the biggest financial protection gaps in the cannabis industry.

Together, Gen3 and Evergreen can help agents serve a market that has been overlooked for too long.

Who should consider these solutions?

These solutions may be a fit for:

• Cannabis business owners
• Dispensary owners
• Growers and cultivators
• Processors and manufacturers
• Cannabis executives
• Key employees
• Cannabis industry investors
• Cannabis employees with W-2 income
• Ancillary cannabis business owners
• Agents who serve cannabis clients
• Advisors with cannabis business owners in their book

The goal is simple: help cannabis professionals protect their families, businesses, employees, income, and future.

Does every cannabis applicant automatically qualify?

No.

Availability depends on factors such as the product, state, carrier, underwriting, source-of-funds review, health history, business structure, income, occupation, and other eligibility requirements.

But the important news is this: cannabis income is no longer an automatic dead end when working through the right channel.

That is the breakthrough.

Why this matters now

Cannabis business owners have built real companies.

They employ real people.

They support real families.

They face real risks.

They deserve access to real insurance and financial protection options.

For too long, cannabis professionals were told to wait, settle, or go without. Through Gen3’s partnership with Evergreen, agents and clients now have a better path forward.

Frequently Asked Questions

Can cannabis business owners buy life insurance?

Yes, eligible cannabis business owners can now apply for cannabis-friendly life insurance solutions through Evergreen and Gen3. Coverage may be used for family protection, key-person coverage, buy-sell planning, estate planning, business protection, and more.

Can cannabis employees buy life insurance?

Yes, eligible cannabis employees may be able to apply for individual life insurance using income earned from a cannabis-related business, subject to carrier rules and underwriting.

Can cannabis income be used as the source of funds for insurance?

Through Evergreen’s cannabis-focused platform, eligible clients may have access to insurance and annuity solutions that are designed to review cannabis-derived income as the source of funds.

Can cannabis business owners buy annuities?

Yes, eligible cannabis business owners and employees may be able to purchase annuities designed for cannabis professionals. These products may help with guaranteed interest, retirement income, and long-term financial planning.

Can cannabis business owners and employees get long-term disability coverage?

Yes, eligible cannabis business owners and employees may be able to explore individual long-term disability coverage. This coverage can help protect income if an illness or injury prevents someone from working for an extended period of time.

Can cannabis businesses offer employee benefits?

Yes, cannabis businesses may be able to offer group benefits such as group life, major medical, accident, cancer, sickness, hospital indemnity, disability, critical illness, and other supplemental coverage options through Evergreen’s platform. Learn more about Evergreen group benefits.

What is Evergreen?

Evergreen is the insurance industry’s first cannabis-focused distribution platform for life insurance, annuities, long-term care insurance, and group benefits. Its website is cannabislifeinsurance.com.

What is Gen3’s role?

Gen3 is excited to offer agents and clients access to these cannabis-friendly solutions through its close partnership with Evergreen.

Ready to learn more?

Cannabis professionals should not have to choose between building a business and protecting their future.

Now, they do not have to.

If you are an agent: contact Gen3 or Evergreen to learn how you can offer cannabis-friendly life insurance, annuities, long-term care solutions, individual long-term disability coverage, and group benefits to your clients.

If you are a consumer: click here to have a member of the team reach out and discuss your needs, your options, and the next steps.