Health insurance coverage is something that every American family needs in order to ensure that they are well taken care of should a health emergency arise. Health care is by its nature reactive, rather than preventative, and is in place to address any immediate issues that arise. For families, this can often lead to the idea that they do not need health insurance coverage or do not need very much, as members of the family rarely get sick. It is, however, not simply the common illnesses that health insurance exists to protect a family from, but rather the sudden and unexpected moments or the illnesses that attach themselves suddenly as a result of environmental issues or family history. It is the potential for these issues that often leads insurance companies to increase the cost of insurance rates.

Family history would appear to be something, at first glance, that would have no bearing on a present-day health insurance quote. If everyone in a family is currently healthy, it should not matter if a grandfather died of diabetes or an aunt had aggressive cancer. To an insurance company, however, family history represents potential risk, something that they work diligently to avoid. When insurance companies create quotes, they are based, to begin with, on the potential that an "average" American will become sick or get injured over the course of a year. Using a number of statistics including occupation, age, and location, a company will determine an initial quote for a person or family. Upon learning that a family history of a particular illness or condition exists, the insurance company will now place the family in a new category all their own. The fact that the disease existed in the family at one time places all members of that family at higher risk to develop it, even if they are currently healthy. This in turn leads to a higher quote based on something that could potentially occur in the future.

Family history can have significant effects on the cost of a quote or cause only a minor fluctuation - the nature of the disease as well as how long ago it affected the family will both be taken into account. If a major issue is present in a family, it is advisable not to lie to the insurance company if asked. This question is still permissible under most state laws, and if a company discovers that a client has been lying about their history, they may have the right to cancel the policy and potentially charge the liar with fraud. Disclosing true family history may have an impact on health insurance coverage, but it is necessary in order to be fully protected.