Today, a growing number of people decide to undergo genetic testing to determine their potential health risks. For instance, genetic testing can reveal a person's propensity for Alzheimer's illness, and breast, skin, or lung cancer.
Results of genetic testing are private and cannot be shared without authorization. However, when you have to provide health-related information on a life insurance application, things can get confusing.
Do life insurance applicants have to reveal the findings of their genetic testing?
When people apply for insurance, life insurance firms want them to fill out a fairly thorough application that includes questions about their medical history and health.
Correct information must be provided on such applications to prevent life insurance payouts from being delayed or refused. The insurance company will obtain the insured's medical records to ensure the application did not have any major misrepresentations if the insured passes away within two years of the insurance's effective date. This time is referred to as the contestability period.
The claim can get rejected if the insurer discovers evidence of unreported medical history and if the misrepresentation of information affected the risk accepted by the insurer.
In the past, there were no particular questions concerning genetic testing on the application forms of life insurance policies. To put it simply , there was not any requirement that an applicant reveal the findings of any genetic tests.
With the advancement of genetic tests and their capacity to identify health hazards, that is probably about to change. Life insurance providers may alter their applications in reaction to these developments and may ask applicants to report the findings of genetic testing.
Are They Legally Allowed to Obtain Data from Genetic Testing?
The findings of genetic tests cannot be used to determine the risk of health insurance, according to the 2008 Genetic Information Nondiscrimination Act. However, it doesn't stop life insurance firms from making decisions on disability insurance, long-term care insurance, and life insurance based on genetic information.
Some states' laws safeguard life insurance holders and forbid insurance firms from accessing genetic data, although the majority of states have not openly prohibited insurance companies from using it.
Insurance firms may deny more insurance claims, and increase the premiums if they have access to the findings of genetic tests. On the contrary, widespread genetic tests may lead to an increase in the number of individuals who apply for life, long-term care, and disability insurance.
Our law firm handles denied life insurance claims, and we also handle life insurance beneficiary disputes and life insurance interpleader lawsuits.