The questions asked by life insurance companies to someone applying for coverage can sometimes feel like an intrusion into their personal life.
The question of genetic testing has arisen recently - can these companies force you to undergo tests or reveal results of tests you have previously had and does this mean your premium will skyrocket?
We cannot choose the gene pool we come from or live a lifestyle that changes our predisposition to suffering from certain genetic conditions or illnesses.
Anyone with a genetic predisposition may be at a disadvantage when applying for life insurance. We can choose to live a healthy and safe lifestyle - both of which reduce our risk of early death, but this may provide no advantage when applying for cover.
This is the case for Melissa Taylor, who tested positive for the BRCA1 gene mutation causing a higher risk of breast and ovarian cancer, but has undergone preventative surgery.
If you are applying for life insurance, the company has the right to ask you about any genetic testing you have undergone, your medical history and also your family history so far as it relates to your medical history.
You usually need to tell them "every matter known" to you, "or could reasonably be expected to be known" that is relevant to the decision of the insurance company in offering you coverage.
It is important to understand that you cannot be forced to undergo genetic testing if you have no signs or symptoms of a medical condition, even if you have a family history of the condition.
In assessing the claim the insurance company can decide whether to:
- refuse to insure you;
- approve insurance, but set the premium at a higher amount;
- exclude coverage of certain medical conditions; and
- only cover you for a certain period of time into the future.
The above decisions, based on genetic testing results, will usually not been seen as discriminatory if there is reliable and strong evidence that the medical condition could lead to early death or disability.
Knowing that you are at a higher risk of suffering a genetic condition and failing to tell the insurer can make the policy void, so it is important to be upfront about all matters you think may be relevant.
For more information contact the Financial Ombudsman Service.
You can also find the life insurance industry's policy on genetic testing here.
