What Is Terminal Illness Benefit?
Terminal illness benefit (TIB) allows your life insurance to pay out while you are still alive, if your doctor confirms:
- You have been diagnosed with a terminal illness
- You have a life expectancy of 12 months or less (24 months at some providers)
- The illness is expected to result in death
The full sum assured is paid as a lump sum. No further premiums are required after the claim is made.
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Get a Free Quote →Is It Included by Default?
Yes. Terminal illness benefit is included as standard on the vast majority of UK life insurance policies at no extra cost. It is not an optional add-on – it is built into the policy.
How to Make a Claim
- Contact your insurer and request a terminal illness claim
- Provide a letter from a consultant confirming diagnosis and prognosis
- Complete insurer’s claim form
- Payout typically within 2–4 weeks
What Happens to the Policy After Payout?
After a terminal illness benefit payment, the life insurance policy is paid out in full and ends. There is no second payout on death – the TIB is an advance payment of the death benefit.
Frequently Asked Questions
Pays life cover while alive if given <12 months to live. Standard on most UK policies.
No. CIC pays on diagnosis. TIB only pays when a condition is confirmed terminal (<12 months).