One of the questions we often hear from people considering genetic testing is: “Could the result affect my ability to get life insurance?”
For many years, this has been an important consideration in Australia. The concern is understandable: a genetic test may identify an increased risk of developing a condition in the future, even when a person is currently healthy.
Australia has had a Moratorium on Genetic Tests in Life Insurance, which has provided some protection for people undergoing genetic testing. However, important changes are now taking place, with new legislation set to provide stronger protections.
What is the genetic testing moratorium?
The moratorium was introduced by the life insurance industry in 2019. It allowed Australians to obtain certain amounts of life insurance without having to disclose an adverse genetic test result, provided the insurance was within specified limits.
The moratorium applied to certain types of life insurance, including products such as life cover, total and permanent disability insurance and income protection, although the specific rules and financial limits varied between products.
Importantly, the moratorium was not a law. It was an industry initiative contained within the Life Insurance Code of Practice.
This distinction has been important because the protections could potentially change over time.
Why does this matter for genetic testing?
Genetic testing can provide valuable information about inherited health risks. A result may help doctors recommend appropriate screening, surveillance, preventive treatment or other healthcare.
However, concerns about insurance have historically caused some people to delay or avoid genetic testing.
This creates a difficult situation. A person may benefit medically from knowing whether they carry a genetic variant, but may worry that discovering an increased genetic risk could make obtaining insurance more difficult or expensive.
The Australian Government recognised this concern and announced legislation to prevent adverse genetic test results from being used by life insurers. The legislation passed Parliament in April 2026.
What is changing in 2026?
The new legislation will introduce a ban on the use of adverse genetic testing results in life insurance underwriting. The ban is scheduled to commence on 8 October 2026.
This represents a significant change from the previous industry-based moratorium.
Under the new arrangements, life insurers will generally not be able to use an adverse genetic test result to decide whether to offer life insurance, or to determine the terms of cover.
The change is intended to reduce the concern that Australians may avoid medically useful genetic testing because of potential insurance consequences.
What should you do if you are considering genetic testing?
If you are considering genetic testing, it is important to understand what type of test you are having and what the current insurance rules mean for you.
Genetic testing is increasingly becoming an important part of healthcare, particularly for people with a strong family history of cancer, neurological conditions, heart conditions or other inherited disorders.
At Rosalind Genetics, we encourage people to discuss the potential benefits, limitations and implications of genetic testing before proceeding. Genetic counselling can help you understand what a test could tell you, and importantly, what it cannot tell you.
The rules surrounding genetics and insurance in Australia are changing. If you have concerns about insurance and genetic testing, speak with your genetic counsellor about your individual circumstances before having a test.
