Key takeaways:
- Currently, federal law prohibits genetic discrimination in health insurance, but not life insurance. New legislation could limit insurers from using genetic data in underwriting.
- Clients may fear genetic discrimination and avoid testing, affecting disclosure and trust.
- Agents should prioritize transparent, empathetic, and educational conversations in health-related conversations.
With genetic testing more accessible than ever, a growing number of Americans are opting to learn about their hereditary health risks. At the same time, regulators are pushing back on how that data can be used, especially in life insurance underwriting. In fact, according to the American Medical Association (AMA), several states are considering or have already introduced laws to prevent insurers from using genetic testing results in underwriting decisions, citing concerns around privacy and discrimination.
At the same time, concerns about genetic discrimination are growing, prompting industry professionals to reconsider how risk is assessed and how relationships are built. These shifts are raising important questions: What can (and should) be used to assess insurability? And how do we protect clients without reducing them to a lab report?
Understanding life insurance genetic testing and the GINA loophole
The rise of at-home genetic testing has brought personal health into sharper focus, but it’s also introduced complexities into the underwriting conversation. Currently, federal law, through the Genetic Information Nondiscrimination Act (GINA), prohibits health insurers and employers from using genetic data, but does not extend those protections to life, disability, or long-term care insurance. This loophole has sparked legislative movement in several states.
In July 2025, the National Council of Insurance Legislators (NCOIL) reviewed a draft model act that would bar life insurers from using the results of predictive genetic tests, unless those results are already part of the client’s official medical record. This model act echoes broader concerns from the AMA, which warns that fear of discrimination may discourage individuals from seeking genetic testing altogether—even when it could lead to early intervention or preventative care.
The human side of life insurance underwriting
As genetic data becomes a lightning rod for debate, it’s important to remember the heart of our work: protecting people, not predicting outcomes.
Focus on what’s in their control: building relationships rooted in empathy and clarity. Remember, conversations around health risks, especially those revealed through genetics and family history, can be emotional. Clients want to feel safe to disclose health concerns without being scrutinized. Develop the skills and sensitivity to discuss family and genetic history without crossing personal boundaries while explaining how life insurance genetic testing may impact their coverage options.
Moreover, these legislative changes raise essential questions about asymmetrical information. What happens if a client knows they carry a harmful genetic trait, but the insurer doesn’t? Could this create adverse selection risks for carriers, or deepen mistrust if clients feel they’re being unfairly penalized for something beyond their control? These are critical considerations as life insurance genetic testing regulations continue to evolve.
Data vs trust: The role of a trusted life insurance agent in the genetic testing era
For life insurance agents, this is more than a policy issue. It’s a human one. An algorithm or genetic test can’t understand your client’s fears and concerns about their genetic history or hereditary health risks. A test result showing genetic markers can’t explain their long-term financial goals and what life insurance coverage means for their families’ security.
But a trusted life insurance agent can help them make informed choices about their coverage, regardless of what’s in their DNA or genetic testing results. In an era where genetic information is increasingly accessible, the value of a knowledgeable, empathetic life insurance professional has never been greater.
Frequently asked questions
Can life insurance companies legally use genetic testing results in underwriting decisions?
Yes, currently life insurance companies can legally use genetic testing results in underwriting decisions. While the Genetic Information Nondiscrimination Act (GINA) protects against genetic discrimination in health insurance and employment, these protections do not extend to life insurance, disability insurance, or long-term care insurance. However, this landscape is changing as several states are introducing legislation to limit how insurers can use genetic data. Life insurance agents should stay informed about state-specific regulations regarding life insurance genetic testing and help clients understand their rights and disclosure obligations in their jurisdiction.
Should I advise clients to avoid genetic testing if they’re planning to apply for life insurance?
This is a nuanced question that requires careful consideration. While you should never provide medical advice, you can help clients understand the potential implications. Clients should be aware that if they undergo genetic testing and discover information about health risks, they may be required to disclose this on life insurance applications. However, avoiding genetic testing out of fear could mean missing opportunities for early intervention and preventative care that could improve their health outcomes. The best approach is to have transparent conversations about timing, disclosure requirements, and the importance of medical care, allowing clients to make informed decisions that balance their health needs with their insurance planning goals.
How should I handle conversations when clients have already undergone genetic testing?
Approach these conversations with empathy and transparency. First, understand what type of genetic testing they’ve had and whether any results revealed specific health risks. Explain the current disclosure requirements clearly and honestly, most life insurance applications require applicants to disclose all known medical information, which typically includes genetic testing results. Help clients understand that honesty in the application process protects them from potential policy contestability issues later. Focus on finding the right coverage options for their situation and emphasize that genetic predisposition doesn’t necessarily mean they’ll develop a condition. Many clients with genetic markers can still obtain competitive life insurance coverage, especially if they maintain healthy lifestyles and regular medical care.
What are the potential consequences if a client doesn’t disclose genetic testing results on their life insurance application?
Failure to disclose material information, including genetic testing results, on a life insurance application can have serious consequences. If an insurer discovers undisclosed genetic information during the contestability period (typically the first two years of the policy), they may deny claims, rescind the policy, or adjust coverage terms. This could leave beneficiaries without the financial protection the policy was meant to provide. As a life insurance agent, it’s crucial to educate clients about the importance of complete and honest disclosure. Emphasize that while genetic information may impact underwriting decisions, proper disclosure protects the policy’s integrity and ensures their beneficiaries receive the intended benefits. Working with clients to find appropriate coverage based on full disclosure is always preferable to risking policy contestability issues.
How can I stay current on changing life insurance genetic testing regulations to better serve my clients?
Staying informed about life insurance genetic testing regulations requires proactive ongoing education. Subscribe to industry publications and newsletters from organizations like the National Association of Insurance Commissioners (NAIC), NCOIL, and professional associations for insurance agents. Attend continuing education courses and webinars focused on underwriting trends and regulatory changes. Maintain relationships with underwriters at the carriers you work with, as they can provide insights into how their companies are adapting to new regulations. Consider joining professional discussion groups or forums where agents share experiences and best practices regarding genetic testing issues. Additionally, consult with legal and compliance experts when you have questions about disclosure requirements or state-specific regulations. By maintaining expertise in this evolving area, you position yourself as a trusted advisor who can guide clients through complex decisions about life insurance and genetic testing.
