H1N1 May Affect Your Ability to Qualify for Life Insurance

Published: Thu 19 Nov 2009

Perry Begay - Staff Writer

The term "preexisting condition" is a common thorn in health insurance applicants' sides, and now it looks like the curse will carry over to the arena of life insurance as well. Just as President Obama and Congress attempt to prohibit health insurers from denying coverage to applicants on the basis of preexisting conditions, life insurance companies have begun a similar practice of their own.

Certain life insurance companies in Canada are now asking applicants if they have ever contracted the H1N1 virus. This question might lead to profiling of applicants' health in the future and perhaps even affect some consumers' ability to qualify for life insurance coverage.

In light of the question's appearance on life insurance applications, some authorities are already calling for stricter guidelines on the privacy of medical records and health information to protect the public. Experts are requesting that the medical databases to which life insurers have access do not reveal whether consumers have ever contracted the H1N1 virus. This would prevent life insurers from using the information to deny coverage in the future.

With a swine flu pandemic still looming large over many parts of the world, the practice of disqualifying those who have ever contracted the virus could leave millions ineligible for life insurance coverage.

Currently, the law permits life insurers to ask applicants questions about their general health and lifestyle. For example, life insurance companies routinely ask questions about smoking habits, drinking, and so on. However, applicants' responses to these questions typically don't disqualify them from coverage; they only influence how much a life insurer will charge them for a policy.

For additional medical history information, life insurers use the Medical Information Bureau (MIB), which is a clearinghouse of health information that insurance companies share. This database helps corroborate the medical history you provide the life insurance company verbally during the application process. Consumer advocates are concerned that if this database indicates whether a consumer has ever had H1N1, life insurers will begin using the information unfairly.

Interestingly, applications for life insurance policies have skyrocketed since the news of the H1N1 virus broke. More people are requesting quotes in what experts believe is a kneejerk reaction to a potentially formidable and relatively unfamiliar virus.

Morgan Moran, a life insurance specialist in Florida, believes the surge in quote requests stems from fear.

"This swine flu story makes you feel incapable for doing anything to protect yourself; they say wearing surgical masks does not stop the virus, so the one thing you can do, is make sure that your family is safe - buy life insurance," Moran said.