Life insurance can be quite important, providing reassurance in the event of your death, contraction of critical illness or terminal illness amongst other items. A policy will provide you you with financial support in adverse circumstances.
Topically, the Association of British Insurers (ABI) has extended a ban which prevents insurers by using genetic testing to deny cover or increase insurance premiums. The restriction was as a result of come to an end next year but has been extended until 2014. Folks have been worried about taking the tests just in case insurance companies used the final results against them.
There are fears that these new tests can provide a genetic underclass that are uninsurable. In order to gain insurance, experts were worried that folks would avoid taking tests which were essential for their health.
The restriction was first agreed with all the government in 2001 and states that insurers can only ask customers should they have had the testing I they require an insurance policy to pay them for over 500,000. If the individual requests an insurance policy over this amount then your company is allowed to ask for test results. These tests are authorized by the Governments Genetics and Insurance Committee that has approved the tests for the brain degenerating Huntingtons disease. Based on the Association of British Insurers, only 3% of policies requested in the UK count over 500,000.
The ABI states that insurance companies needs to be allowed access to any information which will help them assess and value fairly, the chance which prospective customers may pose. However, the price for cover needs to be according to sound and extensive information. Clients are encouraged to admit to the diseases or illnesses that they have or have experienced which run in the family. By admitting to those illnesses, insurers can price their policies accordingly. If customers don't admit these illnesses on beginning a brand new policy they may risk the insurance company having to pay for additional costly claims and pushing up prices for many in the foreseeable future.
The ABIs restriction (Moratorium) was created to balance the concerns of policy holders and potential policy holders using a fair and commercially viable insurance marketplace for all. The evidence insurers may gain from your genetic tests has to be of a higher standard and stay approved by an independent Government appointed committee.
The aim of the Moratorium is always to protect the interests of both insurance companies as well as their potential customers. Insurance companies will be allowed usage of information and customers will not be pressurised into taking these tests.