Life insurance and Genetic Testing / DNA Testing

When you apply for life insurance, the insurer assigns you a health classification. The better your health rating, the lower your monthly premiums.

The health rating you receive depends on several factors, including your personal and family medical history. If a certain illness tends to run in your family, you may pay a higher-than-average premium rate.

Insurance companies try to gather as much medical information about you as possible to better assess the risk of insuring you. This is the reason why most policies include a medical exam. Advances in technology have made a wealth of health information increasingly accessible. Take genetic testing, for instance, which helps identify an individual’s potential genetic predispositions to certain diseases.

Genetic testing can help you make more informed decisions about managing your health. On the other hand, some people worry their life insurance costs would go up if insurance providers received this information.

Fortunately, Canadian Law prevents life insurance companies from asking applicants about genetic testing when they apply. Therefore, you can confidently undergo testing to confirm or rule out the diagnosis of a health condition, knowing that your decision won’t impact your insurability or premium rate.

In this guide, we dive into the relationship between life insurance and genetic testing and Canadian Laws governing the sharing of test results.

What is Genetic Testing?

Genetic testing involves looking for changes in a person’s genes. Gene changes can cause a person to have a disease or condition and increase an individual’s risk of certain medical conditions, such as some types of cancer. 

People undergo genetic testing for several reasons, including: 

Confirming a diagnosis: Your doctor may ask you to undergo a genetic test to confirm or rule out a diagnosis of a certain medical condition.

Carrier screening: Couples use it to learn if they are carriers of a recessive condition. This information can help them understand the odds of having a child with a specific health condition, such as cystic fibrosis. 

Cancer risk assessment: Genetic testing can be useful for some people if certain types of cancers seem to run in their families. 

Tumor tissue testing: Genetic tumor tissue testing, also known as biomarker testing, somatic testing, or tumor genomic profiling, helps doctors accurately diagnose cancer and determine whether a targeted immunotherapy may work. 

Prenatal testing: Prenatal genetic testing can provide information about birth abnormalities or genetic disorders the fetus may have.  

Pharmacogenomics tests: A pharmacogenomic test can help your healthcare provider understand how you’ll respond to specific medications. 

Types of genetic tests available

Different types of genetic tests are done for different reasons. For instance, a physician may recommend a genetic test to determine your risk of developing a certain disease. Direct-to-consumer genetic tests, in contrast, are usually done to learn about one’s ancestry or make predictions about certain aspects of health. 

Genetic tests ordered by healthcare providers

If your doctor ever recommends a genetic test, it will likely be one of the following: 

• Single gene: This type of test looks for genetic changes in only one gene. A single gene test is typically done to confirm a specific diagnosis. 
• Gene panel: This test looks for genetic changes in multiple genes at once. 
• Genomic: This is the process of analyzing an individual’s DNA to look for changes that might indicate a disease. 

Direct-to-consumer (DTC) genetic tests

With DTC genetic testing, you order tests and receive tests directly from the genetic testing company. DTC genetic tests are sold directly to consumers via the Internet, television, and print advertisements. You receive a sample collection kit when you order a test. You will then send the sample to the provider, who will perform the test and share the test results through the mail, the Internet, or an app.

Given the lack of regulation for DTC genetic testing services, it is crucial to evaluate the quality of available options before undergoing any genetic testing.

The most common types of DTC genetic tests are: 

• Genealogy or Ancestry:  These tests may help you learn more about yourself and your familial roots. 
• Kinship: This type of DTC genetic test determines if a biological relationship exists between individuals.
• Disease risk: People take these tests to understand their risk of developing certain diseases, such as Parkinson’s, Alzheimer’s, and celiac disease. 
• Lifestyle: These tests claim to provide information about how your genes can affect your weight, mental health, sleep, injury risk, and physical activity and help you personalize your nutrition and exercise.  

Why Do Your Genetic Test Results Interest Life Insurers? 

Life insurance premiums are based on a person’s life expectancy. The higher the life expectancy, the more affordable the premiums. An individual’s life expectancy, in turn, depends on a combination of factors, such as genetics, gender, health conditions, and lifestyle.

Life insurers can more accurately assess the level of risk you pose to them — and consequently price you better — when they have more information about your health. This is why life insurers are interested in your genetic testing results.

Many top insurance companies can factor that information into the price if genetic testing reveals a greater-than-average risk of developing a serious illness. Not being privy to the results of genetic testing, the insurer argues, puts them at a disadvantage on two counts:

1. The applicant may receive a lower rate than they would otherwise have qualified for.
2. The applicant may be more inclined to purchase coverage. For instance, someone who knows they are genetically predisposed to a serious illness may be more motivated to obtain life insurance coverage.

This situation raises significant concerns about genetic discrimination, prompting advocates to call for legislative measures to protect individuals from unfair treatment based on their genetic information.

However, the notion that genetic results will always work against the consumer must be corrected. Sometimes, it can help an applicant secure a better rate.

For example, as part of the application process, the insurer asks questions about your family history. A family history of a serious illness, like breast cancer, would likely raise your premium. However, if you took a genetic test that rules out a genetic predisposition to breast cancer, your family history would not be considered, allowing you to secure a lower monthly premium. And even if the test result were positive, the insurer would not view you unfavorably more than if you had not taken the test, given your family’s medical history.

Canadian Laws for Using Genetic Information

The Genetic Non-Discrimination Act refrains insurance companies from asking applicants to take a genetic test or to disclose the results of genetic testing that they have undergone. The Genetic Information Nondiscrimination Act (GINA) also imposes limitations on health insurance companies, preventing them from using genetic information to make coverage decisions.

You may be wondering: How does that impact me?

Insurance companies can’t ask you questions about genetic testing when you apply for coverage. This, in turn, prevents discrimination on the basis of genetic characteristics. The broader implications for the insurance industry include ongoing debates about consumer privacy and the potential for genetic discrimination, particularly in life and disability insurance.

Secondly, if you discover a high-risk condition through genetic testing after obtaining a policy, you don’t need to inform the insurer about it.  Thirdly, and no less importantly, it puts you in control of your personal information by barring others from sharing or accessing your genetic test results without your written consent.

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The Pros & Cons of Laws Related to Use of Genetic Test Results

This law has several advantages. The lack of mandatory result disclosure may encourage more Canadians to undergo genetic testing, allowing them to identify potential health risks. Otherwise, the fear of higher insurance premiums or policy ineligibility may deter some Canadians from getting tested, denying them access to critical health information. 

The law also protects consumers’ privacy. Consumers decide whether to share their genetic testing results with their insurer. 

However, there’s one potential drawback: it’s possible that life insurance coverage could become more expensive. 

Insurance carriers claim that people who undergo genetic testing may be more willing to buy life insurance, especially if their results reveal markers for a serious condition. In anticipation of this trend,  insurance carriers may raise the premium rate for everyone. 

Should you get genetic testing?

Don’t let concerns about how genetic test results could affect your life insurance eligibility stop you from getting necessary medical tests. If your doctor has recommended genetic testing, get it done without delay. It will help you receive proper medical advice and care. 

Under Canadian law, insurance carriers aren’t allowed to factor in the results of your genetic testing when they are underwriting you. However, you must share this information if you undergo surgery or take medications based on the test results. Insurance companies have the right to know about all medical procedures or medications you start to treat a medical condition identified through genetic testing. 

If genetic testing confirms that you have a specific disease, work with a knowledgeable life insurance agent when shopping for coverage. They can help you identify the insurance carriers most suitable for your application. 

Do I Need to Inform an Insurer About a Genetic Test?

No, you don’t. In fact, this is something you don’t need to worry about. Life insurance companies aren’t allowed to ask applicants questions about genetic testing. They will, however, ask questions about your family history to find out if you are genetically predisposed to certain conditions. 

You must answer all questions on the life insurance application form truthfully. Lying to the insurer constitutes insurance fraud and can have serious consequences for you. For example, an insurer can refuse to insure you or even cancel a newly issued policy. 

What is No-Exam Life Insurance?

As the name implies, no-exam life insurance can issue a plan to you without taking a medical exam. 

Traditional life insurance policies typically require a detailed health questionnaire and physical exam. During the medical exam, which you can set up to fit your schedule and is paid for by the insurer, a paramedic records details such as your weight, height, and blood pressure. They will also collect your urine and blood samples for testing. If you have certain health issues or are over a certain age, you may be asked to undergo additional testing, like an EKG. 

No-exam coverage has a much shorter approval process than traditional policies, but its premiums are usually more expensive. The two most common types of no-exam medical life insurance plans are: 

• Simplified issue life insurance: It lets you forgo the medical exam but not the medical questionnaire. The insurer determines your eligibility based on the information provided on the application. Simplified issue plans generally cost more than standard policies that require a medical exam. 
• Guaranteed issue life insurance: It lets you skip both the medical exam and the health questionnaire. However, the premiums are more expensive than other types of life insurance. 

What if you don’t qualify for traditional life insurance?

Life insurers use several factors to assess an applicant’s eligibility. While most people who apply are able to qualify for traditional life insurance, some may face rejection. However, just because one insurer has turned you down doesn’t mean other providers will refuse to write you a policy. Each insurance company underwrites differently, so there’s a realistic chance of you being able to secure coverage from some other provider. 

Even when multiple carriers reject your application, you still have options. You can apply for no-medical coverage such as simplified issue and guaranteed issue life insurance. In fact, the latter is designed specifically for people who don’t qualify for a standard policy. 

Guaranteed issue is a type of coverage for which you cannot be turned down as long as you meet the insurer’s age requirement. Most insurers offer it to people between the ages of 50 and 80, although some may offer it to applicants as young as 45 and as old as 85. 

Most guaranteed issue policies offer coverage ranging from $2,000 to $25,000 or $50,000. While the death benefit is rather small, some coverage is better than none. The policy proceeds can help your surviving family members pay for funeral and end-of-life medical expenses. 

It’s best to work with an experienced, independent life insurance agent for individuals with health conditions. A knowledgeable agent can help you identify insurance providers most likely to approve your application and recommend competitively-priced, no-medical-exam policies tailored to your needs.

Conclusion

Genetic testing can confirm whether you have a specific disease or not. It can also help determine your risk of developing certain conditions. If a doctor has recommended genetic testing,  you need not worry about its impact on your insurability or premium rate. Insurance companies can’t access this information without your consent. Nor can they ask you to undergo genetic testing to qualify for coverage. 

Have a question about genetic testing and life insurance? Or need help to secure an affordable policy tailored to your situation? Let Dundas life help you. Get in touch with us and one of our representatives will answer all your queries and help you get the right policy at a great price. 

Frequently Asked Questions (FAQs)

Which genetic questions do life insurance companies ask?

Life insurance companies don’t ask questions related to genetic testing when you apply. 

Can a life insurer require a genetic test?

No, they can’t. The law prohibits insurance companies from asking an applicant to undergo genetic testing. The life insurance medical exam is similar to a routine physical and doesn’t include genetic testing. 

Can family members’ genetic test results impact my life insurance application?

If a family member has undergone genetic testing, it won’t impact your application for coverage. Life insurers can’t access the medical records of your family members. They can, however, look at your medical records with your permission. 

Will genetic test results affect my existing coverage?

If you undergo a medical procedure or start taking medications following a genetic test, it will not affect your existing coverage. Once your policy is in effect, the insurer can’t cancel it or raise your premiums as long as you are truthful on your application.