Term Life Insurance Articles
Genetic Predispositions And Their Affect On Term Life Insurance Quotes
2010-08-01
Establishment of a term life insurance policy is vital for the protection of beneficiaries concerning the financial assets and liabilities of an insured individual, should a premature death occur. However, term life insurance quotes may differ dramatically depending upon the risk of the individual. If the insured has a higher risk of dying during the enrollment term of a particular policy, certainly a term life insurance quote is going to be higher.
The insurance premiums associated with term life insurance quotes are based upon a complicated algorithm that considers nearly every possible characteristic of a persons' life. This most certainly includes the general health of the individual being insured. However, there is contentious debate about whether or not insurance companies should be allowed to utilize information obtained from genetic testing that may suggest a predisposition to certain diseases or illnesses.
Genetic testing may indicate that a person has a higher chance of developing a certain disease, which may have variability in mortality rates. This variability may be more predictable for people with specific genetic markers, and that information may be used by the insurance companies to assess a higher risk for that individual. Simply put, the higher the risk, the higher the premiums, or even worse, a complete denial of coverage.
In 2008, Congress passed a bill entitled the Genetic Information Nondiscrimination Act (GINA) that made it illegal for health insurance companies to use information obtained from genetic testing in evaluating potential health risks. In other words, health insurance providers could not use this information for discriminatory purposes.
However, this law does not extend to life insurance companies. Therefore, it is completely within the right of the life insurance provider to use this information to evaluate the risk of a particular individual, and use it when generating a term life insurance quote.
Generally, people are wary about getting genetic testing done in the first place. On one hand, knowledge about an individual's susceptibility to a particular illness can be a powerful motivational tool to encourage a lifestyle that may prevent this negative outcome. On the other hand, this knowledge can also fuel a person's anxiety to levels that are both unhealthy and counterproductive.
The bottom line is that if you have done genetic testing prior to requesting term life insurance quotes, that information can be used against you in the determination of potential coverage. A caveat to this is that companies cannot force you to have the testing done. If it is a requirement for a particular policy and you don't want to have the testing done, move on to a provider that will not request one.
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Establishment of a term life insurance policy is vital for the protection of beneficiaries concerning the financial assets and liabilities of an insured individual, should a premature death occur. However, term life insurance quotes may differ dramatically depending upon the risk of the individual. If the insured has a higher risk of dying during the enrollment term of a particular policy, certainly a term life insurance quote is going to be higher.
The insurance premiums associated with term life insurance quotes are based upon a complicated algorithm that considers nearly every possible characteristic of a persons' life. This most certainly includes the general health of the individual being insured. However, there is contentious debate about whether or not insurance companies should be allowed to utilize information obtained from genetic testing that may suggest a predisposition to certain diseases or illnesses.
Genetic testing may indicate that a person has a higher chance of developing a certain disease, which may have variability in mortality rates. This variability may be more predictable for people with specific genetic markers, and that information may be used by the insurance companies to assess a higher risk for that individual. Simply put, the higher the risk, the higher the premiums, or even worse, a complete denial of coverage.
In 2008, Congress passed a bill entitled the Genetic Information Nondiscrimination Act (GINA) that made it illegal for health insurance companies to use information obtained from genetic testing in evaluating potential health risks. In other words, health insurance providers could not use this information for discriminatory purposes.
However, this law does not extend to life insurance companies. Therefore, it is completely within the right of the life insurance provider to use this information to evaluate the risk of a particular individual, and use it when generating a term life insurance quote.
Generally, people are wary about getting genetic testing done in the first place. On one hand, knowledge about an individual's susceptibility to a particular illness can be a powerful motivational tool to encourage a lifestyle that may prevent this negative outcome. On the other hand, this knowledge can also fuel a person's anxiety to levels that are both unhealthy and counterproductive.
The bottom line is that if you have done genetic testing prior to requesting term life insurance quotes, that information can be used against you in the determination of potential coverage. A caveat to this is that companies cannot force you to have the testing done. If it is a requirement for a particular policy and you don't want to have the testing done, move on to a provider that will not request one.
