When it comes to long-term care insurance applicants, family medical history is becoming a bigger part of the equation.
Genworth, for example, first started asking applicants about parental history five years ago. But now the insurer says it is rating long-term-care insurance applicants based on the medical histories of their parents. Just last month, the insurer issued a field bulletin to brokers and agents noting that the firm would consider whether an applicant’s parent had early onset coronary artery disease prior to age 60 or dementia prior to age 70.
“Currently, diagnostic genetic information that is found in obtained medical records, which has a relationship to an applicant’s risk, may be used in underwriting,” said Ray Dinstel, chief underwriter with Genworth. “Such histories will impact an applicant’s ability to receive the best rate categories.”
Genworth has four rating categories, from most to least favorable. They are preferred best, preferred, select and standard.
"For an applicant with both parents diagnosed with dementia prior to age 70, the best health class allowed would be select,” said Arthur Rudnick, a White Plains, N.Y.-based long-term care insurance agent. “For one parent who had a history of dementia prior to age 70, an applicant will not be eligible for the preferred best health class.”
That’s because applicants might inherit certain medical conditions from their parents. “Having a parent with early onset coronary artery disease increases one’s risk for coronary artery disease and other forms of cardiovascular disease,” Dinstel said.
A typical policy with no inflation growth for a male aged 55 years old and no parental history of early onset dementia or coronary heart disease would qualify for Genworth’s Preferred Best and pay $1,125 a year compared to $1,185 for an applicant of the same age and gender that has a family history of either medical condition, according to the American Association for Long-Term Care Insurance (AALTCI).
“Sixty dollars is not that big of a difference, but it’s clear that there’s now medical evidence and studies proving that if your parent suffered a condition, there’s a likelihood that you will suffer from it, too,” said Jesse Slome, AALTCI’s executive director.
In the case of Huntington’s Disease, a ratings category may not be available at all. “There are one or two companies that will outright reject you if there’s a sibling or parent in your family who had or has Huntington’s Disease,” Slome said. Genworth is one of them, where allowed by applicable laws and regulations.
“Genworth will decline an applicant whose parent has or had Huntington’s Disease if that applicant has not been tested or has tested positive,” Dinstel said.