Over recent years, gigantic strides in gene identification and genetic testing have ushered new dimensions into the life insurance underwriting process. Does the data from a genetic test accurately predict the mortality risk of an individual seeking life insurance? What are the implications? And how does it reshape the entire industry? Presently, there are no legal barriers preventing the incorporation of genetic testing in underwriting procedures, and numerous life insurance companies are already leveraging these tests to detect genes responsible for conditions like Huntington’s disease and Duchenne muscular dystrophy — ailments that inevitably develop in individuals hosting these genes. Considering the swift progress of this technology, it’s likely we’ll see genetic testing extend to other diseases in the near future.
Genetic testing can determine whether an individual has a genetic predisposition to diseases, such as Alzheimer’s, various cancers; diabetes, among hundreds of other conditions. The repercussions are truly profound. However, it’s worth mentioning that current genetic tests cover merely 10 percent of recognized genetic diseases. While genetic testing might identify specific health risks, it is not always certain that certain genes will be expressed. For instance, genes high risk for diseases like breast cancer may be identified, but the actual expression of those genes is influenced by a mix of other genes, lifestyle, diet, and environmental factors.
Genetic testing and its influence on consumers and life insurance premiums
One significant advantage of genetic testing for consumers is its ability to dispel uncertainties and allow proactive planning for the future. However, consumers are wary of how life insurance company underwriters may interpret the test data. They fear that a gene with a vaguely defined function may be labeled as a risk factor, causing life insurance costs to rise. The question is, why should an individual pay more for a disease they can’t control or one that may never manifest itself? Is it ethical for life insurance companies to determine premiums based on genetic testing? Critics argue that genetic testing’s primary aim was to enhance doctors’ abilities to treat and cure diseases, not to enable discriminatory practices by insurers.
However, life insurance underwriters have traditionally differentiated between applicants depending on their mortality risk. The principle of “equal premiums for equal risks” guides underwriters in their evaluation. Since the inception of the life insurance industry, mortality tables have justified increased premiums. Men typically pay more than women of the same age due to the comparative life expectancies. Some life insurers could even raise premiums by up to 40 percent based on family medical histories of congenital diseases.
Insurers argue that genetic testing should be treated like any other standard medical test, and its results should contribute to underwriting procedures to establish accurate mortality risk. They also postulate that discovering a predisposition to a disease would motivate an individual to seek more comprehensive coverage.
Making genetic test results known to life insurance companies may discourage individuals from getting tested, fearing a rise in premiums. This might potentially prevent early diagnosis and treatment of diseases, pushing back the diseases’ onset.
Genetic testing and its effects on consumers and the life insurance industry
Research evidence indicates that insurance companies have already started discriminating based on genetic test results. The Council for Responsible Genetics reports over 500 instances where individuals or their family members were denied employment or lost their health or life insurance due to aberrant genes, either confirmed or assumed. The Genetic Information Nondiscrimination Act, which became a federal law in 2008, prohibits discrimination based on genetic information only with respect to health insurance and employment, overlooking life insurance, disability, and long-term care insurance. Life insurers can request applicants for access to their personal medical records, which would include genetic test results.
Conversely, those with genetic tests indicating a lifelong good health without any disease predispositions might consider buying life insurance as pointless, adversely impacting the life insurance industry. For example, individuals diagnosed with Alzheimer’s gene would likely choose long-term care insurance over life insurance. Such patterns would leave life insurance firms catering to those with certain illness predispositions, requiring companies to levy higher premiums.
Looking ahead
Genetic testing will significantly reshape our world. We need to find strategies that make this technology beneficial for both consumers and life insurance companies. Insurers must adopt equitable techniques for genetic underwriting. Definitions of genetic risks and mortality rates require more precise scientific analysis. Public sentiments about genetics and life insurance should be considered, determining what kind of genetic data should be shared with life insurance companies without breaching consumer privacy.
Despite advancing science and technology and the possibility of changing underwriting procedures, you can still find optimal term life insurance policies online. Go for BBB-accredited sites affiliated with top-rated life insurance providers to request free quotes. Compare the rates, company ratings, terms and conditions from multiple life insurance quotes. By purchasing online, you could potentially save up to 70 percent!
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