Terminal illness cover

Terminal illness cover allows you to make an early claim on your life insurance if you’re diagnosed with an illness and predicted to pass away within 12 months.

Once a successful claim has been realised, the policy expires and no further claims can be made after the policyholder dies.

Does insurance cover terminal illness?

Most life insurance policies now include terminal illness cover as standard at no extra cost.

Therefore, regardless of the type of cover you have in place, it’s possible to make an early claim on your policy if you’re terminally diagnosed.

All policies provided through Reassured include terminal illness cover at no additional cost.

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Benefits of terminal illness cover

Whilst claiming on your terminal illness cover will end your life insurance, it can provide reassuring peace of mind at an already difficult time.

The payout could be used to:

What is the difference between terminal illness and critical illness?

Whilst commonly used interchangeably, terminal illness and critical illness cover differ.

Critical illness cover provides a lump sum pay out if you’re diagnosed with a life-changing, yet not terminal, illness.

Cover comes at an additional cost and can be purchased as part of a life insurance policy or as a standalone product.

Whereas terminal illness cover allows you to access your life insurance payout early if you’re diagnosed with a terminal illness.

It’s included within the price of your life insurance policy and can’t be purchased as a standalone product.

The cost of terminal illness cover

As mentioned, most life insurance policies now included terminal illness cover as standard.

Therefore, you’re able to benefit from this added protection at no extra cost.

What does terminal illness mean?

With regards to life insurance, terminal illness refers to a condition which is predicted to result in death within the next 12 months.

Typically, this includes:

Smoking and terminal illness cover

With regards to life insurance applicants, whether you smoke or not is a hugely influential factor.

This is because of the health implications associated with smoking, which can greatly increase the likelihood of a claim.

As a result, life insurance with terminal illness cover premiums will be significantly higher than that of a non-smoker.

Making a terminal illness cover claim

Upon diagnosis of a terminal illness, if you’re predicted as having less than 12 months to live, it’s possible to claim early on your life insurance.

Your insurer is likely to require proof of your condition from a medical professional. In some instances, they may also request a further examination from a consultant.

It may not be possible to make a claim if your policy has less than 12 months before it expires.

Lastly, if you have decreasing term cover, the terminal illness benefit reduces over the policy term.

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Joint terminal illness cover

Where a joint life insurance policy is concerned, the terminal illness cover is also joint.

As a result, if one policyholder makes an early claim on the policy, the cover will expire and the other partner will be left unprotected.

Whilst joint cover only offers one payout, the cover is approximately 25%-30% cheaper compared with that of two separate policies.

However, two single policies could result in two separate pay outs and potentially double the coverage.

Life insurance in trust

Even if you’ve written your life insurance in trust, you can still make a claim on your terminal illness cover and the payout will be made directly to you.

This will expire your life insurance and therefore, the named trustees won’t receive a payout upon your passing.

Can someone with a terminal illness get life insurance?

Unfortunately, most life insurance policies require you to provide medical information when applying for cover.

This information is then used to determine the likelihood of a claim being made.

As this is a certainty if the policyholder is suffering a terminal condition, the application will be declined.

However, if aged between 50-85 there’s still another option.

An over 50s plan provides guaranteed acceptance to all UK residents within this age range, without the need to provide any medical information.

The one caveat, however, is that over 50s plans include a waiting period (usually between 12-24 months) which the policyholder must survive before a payout will be made.

If the policyholder passes away before this period, the premiums made into the policy will be refunded but no lump sum payout will be issued.

Get the right life insurance cover for you

As discussed, at Reassured all life insurance policies come with terminal illness cover included as standard.

However, the cost of premiums and the type of cover can vary significantly between insurers.

As a result, to secure the very best price, it’s important to compare multiple quotes.

We can do all the hard work for you, comparing quotes from the UK’s leading insurers to find you the most cost-effective policy.

And our award-winning broker service is completely free for you to use.


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