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.
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).