This could pay out the full amount of cover when life expectancy is less than 12 months on plans with a term of at least two years.
Included at no extra charge for policies with a term of two years or more, terminal illness cover ensures that the life insurance policy will pay out the full amount if you are diagnosed with a terminal illness, rather than in the event of your death.
You need to be eligible to claim. For example, if you stop paying premiums, or fail to tell us about a medical condition, your policy may not pay out.
By ‘terminal’ we mean suffering from an advanced or rapidly progressing incurable illness where, in the opinion of the Chief Medical Officer of the policy provider, life expectancy is less than 12 months.
Terminal illness cover is not available during the last 12 months of the life insurance policy term and is only available on plans with a term of at least two years. Once a terminal illness claim has been accepted, the life assurance plan will end and further pay outs cannot be claimed. No premiums will be payable either and the policy will cease.
If, after a terminal illness claim has been accepted, the policyholder survives to the end of the term, they won’t be expected to pay back the terminal illness payment received. However, no further pay outs can be claimed on the policy and the policy will cease.