Genetic Testing and Life Insurance

The HGSA published a Position Statement Genetic Testing and Personal Insurance Products in Australia.

From July 2019 the Financial Services Council has implemented a moratorium in regard to requirements of disclosure of genetic test results in life insurance product applications at a level below $500,000 for death and total and permanent disability, $200,000 for trauma, $4,000 a month for income protection.

Key features of the moratorium include:

• In place until at least 30 June 2024.
• If you do have a genetic test, your life insurance company must not use your genetic test results (up to the financial limits) unless you choose to declare them.
• Allows people to choose to disclose a favourable genetic test result.
• Independently overseen by the Life Code Compliance Committee.
• The insurance cover limits compare favourably with other countries, being closely aligned to Switzerland and Germany.

People with a favourable genetic test result will continue to be able to use it to show that they do not have the gene pattern associated with an illness that runs in their family.

Life insurers must also take into account any protective treatment an applicant has had (or is following) to prevent them developing an illness that runs in their family.

The FSC policy is available at: https://www.fsc.org.au/policy/life-insurance

For further consumer information see: https://www.genetics.edu.au/publications-and-resources/facts-sheets/fact-sheet-20-life-insurance-products-and-genetic-testing-in-australia