There are several myths about conditions like genetic disorders. Amongst these misconceptions, a common one is that individuals who have a genetic disorder cannot get life insurance. This is far from the truth. It is difficult for individuals with a genetic disorder to get life insurance, but not impossible. A recent ruling regarding this situation has been announced by the Delhi High Court, which has further made it easy for individuals with a genetic disorder to get life insurance.
Before knowing about life insurance plans for people with genetic disorders, it is first essential to understand what genetic disorders are:
Understanding genetic disorders
In simple terms, a genetic disorder is a condition that is caused because of an abnormality in the genetic material that is present in our cells. There are three types of genetic disorders:
Single gene disorder
A single gene disorder, as the name specifies, is a disorder that is caused because of a defect in a single gene. The pattern of this disorder is predictable and simple, making the diagnosis of the condition easy.
Chromosome disorders
When changes are caused in the number or structure of chromosomes, the resultant disorder caused is known as chromosome disorder.
Multi-factorial disorders
Multi-factorial disorders are complex diseases that are caused because of disorders in multiple genes. Usually, these conditions have a complex interaction with your lifestyle factors and the surrounding environment.
To identify a genetic disorder, genetic tests are conducted on blood and other tissues. Gene mutation may be inherited from one or both parents. It can also be caused anytime during an individual’s lifetime.
Genetic disorders and life insurance
Life insurance is a contract between a policyholder and an insurance provider. There are several types of life insurance policies a policyholder can choose from. An individual who is diagnosed with a genetic disorder is eligible for availing of life insurance.
The Delhi High Court ruled a judgment addressing specifically the exclusions of genetic disorders of an insurance policy. It further said that excluding individuals from having life insurance due to their genetic disorders is discriminatory and ambiguous. It violates Article 14 of the Constitution of India. Article 14 reflects that within the Indian territory, no individual will be denied equality before the law based on religion, gender, place of birth, caste, or race. This judgment passed by the high court will be enormously beneficial to individuals who have been diagnosed with a genetic disorder and are seeking life insurance plans. The court also said that every individual has a right to a healthy life.
After the judgment, the Insurance Regulatory and Development Authority of India (IRDAI) announced that any individual with a mental illness or genetic disorder will not be excluded from life insurance coverage. They have further specified insurance providers do not reject any claims based on any exclusions that are related to genetic disorders. For individuals who have genetic disorders, this decision has been comforting and beneficial.
There are several types of life insurance policies an individual with genetic disorders can choose from. They should also choose riders that meet their specific needs. Riders are additional coverages provided for additional premiums. Usually, individuals with genetic disorders choose to buy whole life insurance.
Whole life insurance is traditional life insurance that provides permanent death benefits to the policyholder. It is important that when an individual with genetic disorders is buying life insurance, they read the fine print well. It is important to be well aware of the inclusions and exclusions of the plan to avoid any problems during the time of claim. Also, there is a possibility that the insurance company may quote a high premium to a policyholder with genetic disorders. This is because of the higher claim expenditure that is associated with the condition. Also, among the several rider options, individuals can choose a critical illness rider to get further financial aid in treating their conditions.
It is important to compare the several life insurance plans available and choose the one that fits the policyholder’s meets. They also need to ensure that they have complete clarity regarding the policy that they are planning to purchase.
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