Genetic tests for annuities possible in 2017

The possibility is fresh on the agenda after a new over-the counter test was unveiled by Life Length, a company that measures the length of telomeres – a piece of DNA that prevents chromosome degradation – to gauge how fast a person is ageing.

It costs £400 and will become available to the British public later this year, although it has yet to be accredited by the Department of Health.

John Lawson, head of pensions policy at Standard Life, said: “Our agreement with the Department of Health that prevents us from using genetic testing will be up for review in 2017.” 

Currently, insurance providers can only use genetic testing for Huntington’s disease on life insurance worth £500,000 or more, but Lawson believes the lower limit for annuities will be much lower.

 “If this test proves accurate, I can see a future market in which insurers use and maybe even demand genetic testing for annuities worth over £50,000,” he said.

“I doubt whether there has ever been a case where genetic testing has been used.”

But Joseph Lu, longevity expert at Legal & General, warned: “It is still unclear if the telomeres test would be useful for predicting longevity, after accounting for other factors linked to longevity.

“Though the test is an interesting development and one we will monitor, it is too early to assess what impact, if any, it will have on annuities at this stage.”