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What is terminal illness cover?

Terminal illness cover is a type of insurance cover which provides payouts to the insurance holder in case of them suffering from a terminal illness. An illness is qualified as a terminal illness when a doctor concludes that the person will not survive for more than a period of 12 months. In other words, this cover is given for those who have been informed that they have a maximum lifespan of 12 months from the date of being diagnosed by this illness

This type of cover may sound extremely straightforward and simple but there are a number of clauses in order to receive this payout. Every insurance provider follows a different policy in the case of insurance payouts and it is necessary to go through these clauses before signing up for a policy. First of all, make sure that you read all the fine print when you are getting the policy. Most policies related to life insurance have a section for terminal illnesses, but it is necessary to confirm this. If you do not understand any part of the terms or conditions, make sure that you call up the insurance company and clarify your doubts. If you are still not satisfied, speak to an independent adviser and go over all the terms with them. Complete our online form and an adviser will contact you and help you further.

Most terminal illness covers follow certain sets of rules. In order to be eligible for the cover, you need to be diagnosed with a disease which gives you a maximum of 12 months to live. At this time, you should still be paying your premiums. Those who have stopped paying premiums are not eligible for the cover. It is also necessary that you should have had your current insurance policy for a minimum period of time (usually around 2 years) in order to expect payouts from it. Once you receive the insurance cover, you stop paying your premiums and the policy will end. You cannot put in any other claim once you have taken the payout for this illness. Another thing that should be remembered is that if the person is lucky to have survived for longer than 12 months, they are still entitled to keep the insurance cover and none of the money needs to be given back. However, it will still be looked upon as the end of the insurance policy and no more claims can be made. Certain insurance companies also have their own set of rules. For example, in some companies, a person cannot put in a claim for terminal illness if their policy is going to expire in the next 12 months. For some companies, this rule is applicable for an even longer period of 18 months before the end of the policy. A very small number of companies will actually give you cover even before your policy is set to expire.

So it is very important to know exactly what kind of medical or life insurance that you are signing up for so that if you are unfortunate to contract a terminal illness, you will know what the procedure is to gain an insurance cover for you and your family. Remember we are here to help you, please complete our online form and a trained and independent adviser will contact you and help you with all your questions.

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