When applying for life insurance, insurance companies rely heavily on health-related data to formulate a fair premium for the requested coverage. This data is gathered through a health survey that involves questions about your medical history and lifestyle.
One critical aspect of this assessment is your genetic profile. Genetic information in your DNA can indicate potential severe health issues, which can amplify the insurer's risk in offering coverage. Depending on genetic test results, life insurance companies may increase your premium, limit your coverage amount or even deny your application.
Insurance providers may gain access to your genetic test data through various means, including your medical record, third-party data providers, or directly from you. The data assists them in predicting the statistical likelihood of you developing a medical issue that could reduce your lifespan. A clean genetic profile can increase your chances for lower premiums, especially if the rest of your medical record supports a healthy lifestyle.
However, insurance providers are not necessarily restricted to your doctor's test results and may ask you to share your medical record as part of your application. They might also obtain this information from a data provider or request it upon application. It's important to note that there are, however, regulations and stipulations under HIPAA which protect your genetic data privacy.
Despite these protections, laws like the Genetic Information Nondiscrimination Act of 2008 primarily cover health insurance, leaving other types of insurance like life, disability and long-term care insurance free from such restrictions. This lack of regulation can potentially lead to unsavory downstream effects, particularly for the American workforce.
The caveat is that genes do not necessarily determine our fate. As an example, people carrying BRCA1 and BRCA2 genes - mutations known to cause breast cancer - may take preventive actions against developing the disease or might not develop it at all. This is not always considered by insurers when deciding on life insurance coverage.
In fear of genetic discrimination, many individuals prefer to skip life insurance instead of undergoing a genetic test. That said, genetic tests are usually not considered if you get a group life insurance policy through your employer. These policies are often “guaranteed issue,” meaning coverage is assured without a medical exam or sharing genetic test results.
Nonetheless, your genetic information may still be shared with third-party commercial organizations if you use self-testing kits like 23AndMe or Ancestry. This is why it's always advisable to thoroughly read through privacy policies before deciding to use such services. Finally, remember that you have the right to request your file from the Medical Information Bureau (MIB), a database of underwriting information used by insurance companies, once a year free of charge. You can dispute and correct inaccuracies if necessary.