DNA Testing Kits, such as 23andMe, have become a popular item. They are tests that allow individuals to send in a sample of their DNA and in return get information about their ancestry. The assessments that the Google-backed company 23andMe has been providing are on the rise since the Food and Drug Administration approved the company to assess risk for 10 genetic diseases.

The report can recognize different genetic variants associated with an increased risk of developing certain health conditions such as Late-Onset Alzheimer’s or Parkinson’s Disease. 23andMe also provides a “Carrier Status” which determines if a customer carries a genetic variant for a health condition. The variant doesn’t necessarily mean the customer has the disease, but they have the potential to pass it down to their children.

So when it comes to life insurance, an industry that makes money based on it’s ability to manage risk, how could these tests potentially impact the market? At this point, DNA tests are not a part of the life insurance application process. While some watchdogs have been on alert for these DNA tests impacting health insurance, not as much attention has been paid to life insurance.

There are a few things that consumers should understand about life insurance and these DNA testing kits:

State laws protecting genetic information vary. Most insurance companies are restricted by state laws from using genetic information in the underwriting process. Genetic results are protected as a form of private property. However, some insurance companies will try to argue that taking a direct-to-consumer genetic test may give them some leverage. Some companies argue that they can still request genetic information and deny an individual coverage if they hide test results. This leads to some debate over state laws. Seventeen states have laws that restrict insurers from using genetic information in the underwriting process, and even in states that don’t have these restrictions, insurers do not explicitly ask for genetic information… for now.

Laws can be interpreted in different ways. The American Council of Life Insurers (ACLI) said there are no state laws barring an insurer from using existing results and only two states prohibit requiring an applicant to take a genetic test for life insurance. The ACLI argues that insurance companies depend on the honesty of the applicant and full disclosure of all pertinent information. Also, they say that if a disease is serious, patients would likely be consulting medical experts anyway and therefore the information would be available in medical records, which can be used by insurers. However, policymakers argue that anti-genetic discrimination laws are clear. They believe genetic information is private and using that to determine how much an individual should pay for insurance is a breach of privacy.

Even a favorable rating can come with a catch. According to experts, customers will most likely receive the better end of the deal if they are aware of genetic risks. Certain packages can be more worth the deal than others however. Life insurance customers are grouped in a particular class based on their level of risk. If someone buys a term policy without disclosing genetic predispositions, consumers will most likely be valued as less risky than they should be, giving them slightly better premiums. However just because someone has a predisposition towards a disease or illness, there is no certainty that they would die during the term insurance period.

Life insurers may retaliate. If there are signs that genetic testing is working at odds with actuarial tables, insurance companies may decide to adjust policies and rates. Some argue that it’s possible that DNA kits could help tilt the odds in favor of the consumer in some situations. However, the insurance companies always have the ability to adjust their rates accordingly.

For now, while insurance companies are allowed to ask if you’ve ever taken a genetic test, and request the results, you are not required to provide that information to them. Insurers are allowed to deny you a policy however. Genetic testing kits are a popular trend that provides consumers with a lot of family information. It is up to the consumer what he or she wants to do with that information.