Your life cover, paid while you can still use it
Life insurance normally pays after you die. Terminal illness cover changes the timing. If you become seriously ill and doctors expect you to live less than a year, your insurer pays the sum assured to you instead of to your family later. You can then spend time with the people you love without worrying about the bills.
Some people use the money to clear the mortgage straight away. Others pay for care at home, a family trip or simply settle their affairs. The choice is yours, because the insurer places no limits on how you spend it.
How insurers decide a claim is valid
Each policy sets out its own wording, but the usual test has two parts. First, a consultant or hospital specialist must confirm the diagnosis. Second, they must give an opinion that the illness is likely to lead to death within 12 months, and that treatment will not change that outlook.
Your insurer may ask for medical records and write to your specialist directly. You do not need to prove anything yourself beyond giving consent and sharing the details. If the specialist cannot give a clear prognosis, the insurer may wait for more information before it decides.
- Diagnosis confirmed by a hospital consultant
- Life expectancy judged to be under 12 months
- Illness not expected to respond to treatment
- Claim made within the dates the policy allows
The final months of the policy term
Many insurers will not pay a terminal illness claim if the diagnosis comes in the last 12 or 18 months of the policy. The reason is simple: if you are expected to live past the end date, the life cover itself would never have paid. Your policy schedule tells you exactly where that cut-off sits.
If you hold whole of life cover, terminal illness benefit sometimes stops at a set age. Read that part of your terms if you are older or close to the end of a term policy.
How it differs from critical illness cover
People often mix the two up. Critical illness cover pays on diagnosis of a listed condition, such as certain cancers or a heart attack, whatever the outlook. Terminal illness cover only pays when doctors expect the illness to be fatal within a year. Many people survive a critical illness, which is why that cover is separate and costs more.
Terminal illness benefit comes with most life policies. Critical illness cover is an option you choose and pay for when you apply.
How Hi Tomorrow checks this for you
When we compare life policies, we look at how each insurer words its terminal illness benefit and where its end-of-term cut-off falls. If you already have a policy, we can read the terms with you and explain what it would and would not pay.
If you or someone close to you is facing a terminal diagnosis, call us. We can help you work out whether a claim is possible and handle the paperwork with the insurer. Acceptance and terms are always subject to the insurer's underwriting.