What is Terminal Illness Cover?

Terminal illness cover can provide you with a financial cushion if you are diagnosed with a serious illness which is going to lead to death. It can give you great peace of mind to have this kind of policy. It is especially worth considering if you have serious illness which runs in your family. Some conditions, like cancer or heart disease, can be hereditary and so place you at a greater risk of contracting such an illness.

Terminal illness cover is often free on most life assurance policies. If it is not an automatic inclusion, it can be added to your life cover on request similar to income protection coverage. It is best to check your policy document carefully to ensure that you have all the coverage that you require and get it added if it is missing.

Criteria for Terminal Illness Cover

Qualifying for a terminal illness cover pay-out involves very specific criteria. You would have to be diagnosed with a serious illness where you are expected to die within twelve months of your diagnosis. You would then have to supply a certificate from your doctor in order to prove your circumstances to your insurance company.

One major benefit of taking out terminal illness cover is that once you have been adequately diagnosed, your insurer will pay out on your life assurance policy immediately, while you are still alive. This means that you can benefit from your life assurance before you actually die. This can be a great asset if your newly diagnosed condition has led to reduced economic circumstances.

Having your life assurance policy made available to you can remove many worries from your life at a very distressing time. The lump sum from your assurance policy can make your life more comfortable during your final months. It can also relieve the stress of ensuring that you have enough money for bills and mortgage repayments if you have to stop working because of your illness.

However, before taking out a terminal illness cover policy, you may wish to check which potential terminal illnesses are covered by your insurer. If you do have hereditary illnesses in your family which concern you, you should probably check to make sure that those particular illnesses are covered by the policy which interests you. It is also worth noting that most insurance policies will not pay out if you are diagnosed within the last eighteen months of the term of your life assurance policy. Additionally, terminal illness cover can often only be taken out if the term of your policy is longer than at least two years.

One good thing about terminal illness cover is that if you are diagnosed with a terminal illness, and your doctor does expect you to die within 12 months, but you defy these expectations and survive longer, you will not have to pay back the money. However, your life assurance policy will be at an end and you will not be able to make another claim on it. You may also find it difficult to take out another life assurance policy given your circumstances.

In summary, there are many benefits of terminal illness cover. As it is usually a free addition to your life assurance policy, it requires very little effort to implement. When individuals are diagnosed with a serious illness, many worries and distractions can arise which are not helped by economic woes. Terminal illness cover can take away the financial concerns which accompany such a diagnosis and allow a terminally ill person to manage their situation more comfortably.

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