How Family History Impacts Your Life Insurance

Life insurance is designed to protect the financial future of your dependents, usually your children. It pays out a lump sum or regular amounts in the event of your death. The cost of life insurance is affected by your age, current health status, and lifestyle choices. However, one common question is whether family health history also plays a role in determining the cost of coverage.

The short answer is yes, your family's medical history can impact the cost of your life insurance premiums. When you apply for life insurance, insurance companies will typically ask about your family's health history, particularly any history of hereditary or genetic illnesses. This information helps insurance underwriters assess your overall risk and determine the likelihood of you making a claim.

It's important to be honest and disclose any relevant medical information about yourself and your family when applying for life insurance. Failing to do so could result in your policy being invalidated or your claim being denied.

Cancer

A family history of cancer can impact your life insurance rates and eligibility. When you apply for life insurance, providers will usually ask about your family's medical history to assess your risk of falling ill or dying. This includes asking about any history of illness in your family that could be hereditary, such as certain types of cancer.

If you have a family history of cancer, you may be deemed a higher risk and have to pay higher premiums. The insurance company will consider how many family members were affected, their age at diagnosis, and their relationship to you. For example, if your mother was diagnosed with breast cancer at 40, this may be seen as a higher risk than if your grandmother was diagnosed at 70.

However, some insurers may disregard diagnoses that occurred after a certain age, usually 60 or 65. Additionally, some companies may only consider the medical history of your parents and ignore your siblings' history, while others may disregard gender-specific cancers if you are not that gender.

It's important to be honest about your family's medical history when applying for life insurance. Failing to disclose relevant information could result in your application being rejected or your policy being invalidated.

If you have a family history of cancer, working with an independent agent who can help you find insurers that are more lenient towards this specific medical history can be beneficial. They can assist in matching you with companies that have more liberal underwriting guidelines and are better suited to your family's medical history.

Heart disease

If you have a family history of heart disease, you may have to pay higher premiums for your life insurance policy. This is because people with a family history of heart disease may be at a higher risk of developing the condition themselves.

The age of diagnosis or death of your family member will also be taken into account. For example, if your parent was first treated for heart disease at age 75, this will be seen as a lower risk than if your parent died of a heart attack at age 45.

The number of family members affected by heart disease may also impact your life insurance rates. If more than one of your relatives has suffered from heart disease, your rates may be higher.

However, it's important to note that your personal health profile is a much bigger factor in determining the cost of your life insurance. Even with a family history of heart disease, you will still be able to get life insurance coverage, but you may have to pay higher premiums.

Additionally, if you are above a certain age, some life insurance companies may disregard your family history of heart disease. For example, if you are currently aged 60-70, some companies may not take your family history into account when determining your rates.

Diabetes

If you have a family history of diabetes, you are more likely to develop it yourself. However, this is not a guarantee, and your personal health profile is a much bigger factor in determining the cost of your life insurance.

Type 1 Diabetes

People with type 1 diabetes are unlikely to qualify for the cheapest insurance rates. Underwriters will evaluate each case individually, considering factors such as the age of onset, treatment received, and any related complications. Type 1 diabetes is often perceived as riskier than type 2 due to its earlier onset, the necessity of daily insulin injections, and a higher risk of developing complications such as heart disease and kidney damage.

Type 2 Diabetes

Type 2 diabetes is the most common form and is characterised by insulin resistance and the loss of cells in the pancreas that produce insulin. It often has a strong link to family history, but environmental and behavioural factors also play a role. Studies have shown that individuals with one parent with type 2 diabetes have a 40% lifetime risk of developing the disease, while those with both parents affected have a 70% risk.

Gestational Diabetes

Gestational diabetes occurs during pregnancy when blood glucose levels become elevated, usually around 20 to 24 weeks. It is recommended that women with risk factors for type 2 diabetes or a history of gestational diabetes be screened before or during pregnancy. Most women who develop gestational diabetes have a close family member with the disease.

Impact on Insurance Premiums

Having a family history of diabetes will likely result in higher insurance premiums. This is because insurers use family medical history as an indicator of future health risks when determining premium costs. However, your personal health profile and age are bigger factors in the overall calculation.

Neurological conditions

When applying for life insurance, you may be asked about any history of neurological disorders in your immediate family, such as motor neurone disease (also known as amyotrophic lateral sclerosis or ALS) or Parkinson's disease. The insurance company will want to know how many family members have been affected and at what age the diagnosis was made.

If a neurological condition is diagnosed later in life, after the age of 60 or 65, it may be less of a concern for insurers. For example, if your parent was diagnosed with a neurological disorder at age 75, it presents a lower risk than if they had been diagnosed at a younger age, such as 45.

It's important to note that your personal health profile is usually a much bigger factor in determining the cost of your life insurance premiums. Even if your family has a history of neurological conditions, being in good health yourself and leading a healthy lifestyle can offset this risk to some extent.

However, it's crucial to be honest and disclose any known family medical history when applying for life insurance. Failing to do so could invalidate your policy or result in reduced or denied payouts to your beneficiaries.

Age of diagnosis

The age of diagnosis of a medical condition in your family can have a significant impact on your life insurance rates and eligibility. Underwriters consider the age of diagnosis when evaluating the risk associated with your application.

In general, an early diagnosis of a serious illness in your family can result in higher insurance rates. For instance, if your parent was diagnosed with heart disease or cancer at a young age, such as 45 or 55, it will likely lead to higher premiums. On the other hand, if the diagnosis occurred later in life, after the age of 60 or 65, most insurers may disregard it, and it won't affect your rates.

The age of diagnosis also plays a role in determining eligibility for the best insurance rates. For example, if a parent or sibling passed away due to heart disease before the age of 60 or 65, you may not be eligible for the best rates with certain companies. However, some insurers, like Pacific Life, use an age cutoff of 50 for their top rates. Similarly, a cancer diagnosis in a parent before 60-65 might not be a barrier to obtaining the best rates with specific companies, such as Banner Life.

It's important to note that the impact of a family member's diagnosis can depend on their relationship to you. The history of illnesses in your immediate family, especially your parents and siblings, is typically given more weight. Additionally, gender-specific cancers, such as breast or prostate cancer, are usually only considered if you are of the same gender as the affected family member.

While the age of diagnosis is a factor, it's important to remember that your personal health and lifestyle are usually more significant in determining your life insurance rates. Demonstrating proactive management of your health and building healthy habits can help mitigate the impact of your family's medical history.

Frequently asked questions