Does Family History Really Affect Life Insurance Premiums?

Once you have applied for life insurance, an underwriter will review your application to determine eligibility and identify your rate class. There are several factors the underwriter will consider during this process. They will include: age, current health status, extracurricular activities, and family history.

Yes, that’s correct, your family history does play a factor. You could be in the greatest of health, but still be affected by a family history of poor health. If your family’s health history is less than stellar, this probably raises a lot of questions for you. The purpose of today’s blog is to answer those questions. So, let’s get started.

Why Do They Care About My Family’s Health?

Modern advances in medicine have revealed that many disorders occur more frequently in some families than others. If an immediate family member (father, mother, and/or siblings) have been diagnosed with a serious medical condition, the underwriter will delve a little deeper into their history post-diagnosis. Depending upon the severity, as well as a number of other factors, you could be facing higher policy premiums. In extreme cases, an applicant could be denied coverage.

What Are They Looking For?

While there are a number of health conditions your underwriter will consider, two in particular raise the most concern. Dubbed “The Big Two,” a family history of heart disease or cancer will send up red flags to your life insurance underwriter. Both have been linked to early mortality and are the leading causes of death in the United States. If several family members have been diagnosed with either condition before the age of 60, you will likely be placed in a higher rate class, resulting in a higher premium.

In addition to “The Big Two,” a family history of the following diseases/medical conditions could result in higher premiums:

• epilepsy
• cystic fibrosis
• eye disorders
• deafness
• motor neuron disease
• kidney disease
• blood disorders
• liver disease
• Alzheimer’s disease
• musculoskeletal
• bowel disorders
• Tay-Sachs disease
• neurological/psychiatric
• PKU
• drug dependency
• respiratory
• alcoholism

While it is possible that your family’s health history could result in a denial of coverage, do not let that discourage you. The Vista Insurance Group specializes in helping high-risk clients obtain the coverage they need.

What If I’m Adopted?

If you are adopted, finding out your family history could prove difficult, if not impossible. You will not be penalized for this. Note this information on your application and the underwriter will work solely off of your medical history.

Can’t I Just Leave That Information off My Application?

Falsifying or omitting information on your application is considered insurance fraud. If discovered, you could face probation, community service, fines, or even jail time. And, since life insurers have access to MIB (Medical Information Bureau) reports, it’s highly likely that they will uncover the truth.

While most insurance companies will not take the time to prosecute in these cases, the lies will have consequences. It can slow down the underwriting process or, in some cases, cause them to decline the application altogether.

Should you make it all the way through the underwriting process and the policy is issued, you and your family are still at risk. Before paying out, insurance companies investigate death benefit claims. If your lies or omissions are discovered, the insurer has every right to deny or reduce payout to your beneficiaries.

Does Every Insurance Carrier Follow the Same Set of Rules?

No, each insurance carrier follows their own set of underwriting guidelines. Some may place more emphasis on an applicant’s parents’ medical history, while others place equal importance on both parents and siblings. One may deny coverage when both parents have a history of kidney disease, while another may only qualify you for a Standard rating.

If members of your family have been diagnosed with a serious medical condition, the best thing to do is be honest and up-front. The Vista Insurance team is here to assist you in finding the very best coverage at the most affordable rate. We have built relationships with a number of reputable carriers and are here to ensure you obtain the coverage you need for your unique situation.