Genetic testing is becoming increasingly common in Australia. Whether it’s testing for hereditary cancer risk, carrier screening before pregnancy, or proactive health screening, more Australians are accessing genetic information to make informed decisions about their health.
But one of the most common questions we hear at Rosalind Genetics is: “Will having a genetic test affect my insurance?”
Here’s what you need to know, including an important legislative update.
Health Insurance vs Life Insurance: They Are Not the Same
In Australia, private health insurance does not use genetic test results to determine your eligibility or premiums. Health insurers are not allowed to discriminate based on genetic information. Your decision to have a genetic test will not affect your ability to obtain or maintain private health insurance cover.
Life insurance, however, is different.
Life Insurance and Genetic Test Results
Life insurance products include:
- Life cover
- Total and permanent disability (TPD)
- Trauma insurance
- Income protection
are risk-rated in Australia. This means insurers assess your personal risk factors when deciding whether to offer cover and at what premium.
Currently, genetic test results can be requested by life insurers when you apply for new cover or increase an existing policy. If asked, you must disclose known genetic test results. Failing to disclose relevant information could affect the validity of your policy.
The FSC Moratorium
In 2019, the Financial Services Council (FSC), which represents most Australian life insurers, introduced a partial industry moratorium on the use of genetic test results.
Under this moratorium:
- Insurers cannot use genetic test results for policies below certain financial limits.
- For life cover, the limit is currently $500,000.
- For TPD, it is $500,000.
- For trauma cover, $200,000.
- For income protection, $4,000 per month.
If you apply for cover below these limits, insurers who are FSC members agree not to use your genetic test results in underwriting decisions.
However, the moratorium has important limitations:
- It is self-regulated, not government legislation.
- It only applies to FSC member insurers.
- It applies only up to specific financial thresholds.
- It can be reviewed or changed.
Federal Legislation Introduced in November 2025
In a significant and long-awaited development, legislation to ban genetic discrimination in life insurance was introduced to Federal Parliament in November 2025.
Although the bill has not yet passed its introduction represents an enormous step forward for Australians considering genetic testing.
Once passed, the legislation will not come into force immediately. There will be a six-month implementation period before it takes effect. However, provided it is passed before the middle of 2026, the new protections are expected to come into force later in 2026.
When enacted, this legislation will replace the current self-regulated industry approach with legally enforceable protections, providing far greater certainty and consumer confidence.
For many individuals who have delayed genetic testing due to insurance concerns, this represents a pivotal moment.
What About Family History?
Even without genetic testing, insurers can currently ask about your family history of medical conditions. A strong family history of cancer, heart disease, or neurological conditions may influence underwriting decisions, regardless of whether you have undergone testing.
Interestingly, in some cases, a negative genetic test result (for example, testing negative for a known familial cancer mutation) may actually improve insurability compared to relying on family history alone.
It remains important to seek tailored advice before proceeding with predictive testing.
Timing Matters
Until the new legislation is formally passed and comes into effect, the current system including the FSC moratorium still applies.
For some individuals, it may make sense to:
- Review existing insurance cover
- Consider securing desired levels of cover
- Seek financial advice
- Discuss timing of testing with a genetic counsellor
This is not about fear; it is about informed decision-making.
At Rosalind Genetics
We believe informed consent includes understanding not only the medical implications of genetic testing, but also the financial and insurance landscape.
The introduction of federal legislation in November 2025 marks a historic step toward stronger consumer protection in Australia. While we await its passage and implementation, thoughtful planning remains important.
Genetic information can be empowering. With the right guidance, you can make decisions that protect both your health and your financial future.
If you would like to discuss genetic testing and insurance considerations in a confidential consultation, the team at Rosalind Genetics is here to help.
