Genetic Testing Can No Longer Be Used Against You for Life Insurance - What Changed on 8 October
Written by: Melissa Cunliffe
Genetic Testing Can No Longer Be Used Against You for Life Insurance - What Changed on 8 October
From 8 October 2026, a significant barrier to genetic testing has been removed from Australian life insurance underwriting.
Under the new legislation, life insurers cannot ask for, solicit or use protected genetic-testing information when deciding whether to offer life insurance or on what terms. The ban applies to new policies starting on or after 8 October and to relevant variations of existing policies from that date. It covers death cover, TPD, trauma and income protection, but not health insurance.
What insurers can still consider
The change does not mean underwriting disappears. Insurers can still consider diagnosed medical conditions, symptoms, treatment history, family history, age, occupation, lifestyle and other information permitted under the law.
An applicant can also choose to provide favourable genetic information where it assists them, subject to the detailed rules.
Why this matters to family business
Life insurance in a family business is rarely just a personal product. It can underpin key-person cover, debt reduction, shareholder or buy-sell arrangements and the family's financial position if an owner dies or becomes permanently disabled.
A succession plan can look excellent on paper and still fail if there is no liquidity to buy shares, repay debt or replace the income of a key person.
The change does not replace an insurance review
The new genetic-testing protection is one input into a much larger question: is the level and ownership of cover still appropriate for the business and family? Business values, debt, ownership structures and personal circumstances change over time.
Coordinate the moving pieces
Insurance, shareholder agreements, wills, superannuation nominations and business succession documents should work together. Changes in one area can create unintended consequences elsewhere.
The practical takeaway
Clients who previously avoided genetic testing because of concerns about life-insurance underwriting can seek appropriate medical and insurance advice about the new regime. Business owners should use the change as a prompt to review whether their broader protection strategy still reflects the business they have today.
Where the 4P's Future Prosperity Framework fits
People: Protect the family and key people behind the business.
Preserve: Preserve business and family wealth if illness or death occurs.
Protect: Coordinate insurance, debt and succession documents.
Prosper: Build continuity so the business can keep operating through major life events.
Not sure whether your insurance, succession and asset-protection strategies still align with your current circumstances? Book a meeting with the 4P's Future Accounting team to review your business and family protection framework, identify potential gaps and ensure your plans work together when they're needed most.
FAQs / People Also Ask
Can Australian life insurers use genetic test results after 8 October 2026?
The new law prohibits life insurers from asking for, soliciting or using protected genetic-testing information for relevant underwriting decisions.
Which insurance products are covered?
Death cover, TPD, trauma and income protection are included. Health insurance is not.
Can insurers still use my medical history?
Yes. Diagnosed conditions, symptoms, treatment and other permitted underwriting information can still be relevant.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
