Genetic Tests – Your insurance company loves them!


Yesterday a number of news organisations spread the word that about 10,000 Australians get a genetic test done each year.

I well understand the desire some people may have to confirm that their child is indeed their own.

The flip side of this for your financial planner is that some insurance companies are asking whether you’ve had one or not.

So, how is a genetic test relevant to an insurance company?

Easy, when an insurer is considering whether they should give you the $1Million of insurance you’ve applied for, they want to know whether your health condition is a deviation from the community averages for someone of your sex, age, career and smoking status.

Your genetic report can tell them this.

An insurer may decline your application for life insurance or trauma cover if your genetic markers show a possibility of a major illness or condition such as cancer, MS or Parkinsons Disease. Even if you have no immediate family history of them occurring!

They could claim that you wished to determine your level of risk before applying for cover, and that they should know what you know.

So please don’t get a genetic test, unless you absolutely must. Afterall, you’ve loved and provided for your kids so far, does it really matter if you’re not the biological parent.

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