In recent years, there have been significant advancements in gene identification and genetic testing, greatly impacting the life insurance underwriting process. This raises questions about whether genetic test data can accurately predict an individual’s mortality risk and what the implications might be for the life insurance industry. Currently, there are no legal restrictions preventing the use of genetic testing in underwriting. Many life insurance companies already use these tests to identify genes linked to conditions like Huntington’s disease and Duchenne muscular dystrophy, which inevitably develop in individuals with these genes. As technology progresses, it’s likely that genetic testing will expand to include other diseases soon.
Genetic testing can reveal if someone has a predisposition to diseases like Alzheimer’s, various cancers, diabetes, and many others. While this can have significant implications, it’s important to note that current tests cover only about 10 percent of known genetic diseases. Identifying specific health risks through genetic testing does not always mean those genes will manifest as diseases. For example, high-risk genes for breast cancer could be identified, but whether they develop into the disease depends on several factors including other genes, lifestyle, diet, and environmental influences.
One major benefit for consumers is that genetic testing can eliminate uncertainties and aid in future planning. However, there is concern about how life insurance underwriters might use this information. Consumers fear that an ambiguous genetic function could be labeled a risk factor, leading to higher insurance costs. This raises ethical questions about whether it is fair for individuals to pay more for a disease they might never develop. Critics believe genetic testing was meant to help doctors treat and cure diseases, not enable potential discrimination by insurers.
Traditionally, life insurance underwriters assess applicants based on mortality risk, adhering to the principle of “equal premiums for equal risks.” Historically, this has meant higher premiums for men compared to women of the same age due to different life expectancies, and increased premiums based on family medical histories of hereditary diseases. Insurers argue that genetic testing should be treated like any other medical test and incorporated into underwriting to gauge accurate mortality risk. They also suggest that knowing one’s genetic predisposition to a disease might encourage individuals to seek more comprehensive coverage.
However, the possibility of premium increases might deter individuals from getting tested, which could delay the early diagnosis and treatment of diseases. Research shows that insurance companies have already started discriminating based on genetic test results. The Council for Responsible Genetics reported over 500 cases where individuals or their family members were denied employment or lost their health or life insurance due to genetic factors. The Genetic Information Nondiscrimination Act of 2008 addresses discrimination in health insurance and employment, but does not extend to life insurance, disability, or long-term care insurance. Life insurers can request access to applicants’ personal medical records, including genetic test results.
Those with genetic tests showing no disease predispositions may find life insurance unnecessary, potentially impacting the industry negatively. For instance, individuals with genes that indicate a likelihood of developing Alzheimer’s might choose long-term care insurance over life insurance, leaving insurers with a higher concentration of policyholders having certain illness predispositions, which could lead to higher premiums.
Looking ahead, genetic testing will have a profound impact on our lives. It’s crucial to develop strategies that benefit both consumers and life insurance companies. Insurers need fair methods for genetic underwriting, requiring accurate scientific definitions of genetic risks and mortality rates. Public opinion on genetics and life insurance must be considered to determine what genetic information should be shared without compromising consumer privacy.
Despite the advancements in science and technology and potential changes to underwriting procedures, you can still find optimal term life insurance policies online. Choose BBB-accredited sites associated with top-rated life insurance providers to request free quotes. Compare rates, company ratings, and terms and conditions from various life insurance quotes. By purchasing online, you could potentially save up to 70%!