Terminal Illness Benefit on Life Insurance UK 2026
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Terminal Illness Benefit: What Is It and How Does It Work?

Terminal illness benefit pays out your life insurance while you are still alive if you are given a terminal diagnosis with a life expectancy of less than 12 months. It is standard on most UK life insurance policies.

5 min read Published March 2026

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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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.

Key difference from CIC: Critical illness cover pays on diagnosis of specific serious conditions (cancer, heart attack, stroke, etc.) regardless of prognosis. Terminal illness benefit only pays when a condition is specifically terminal with <12 months to live.

How to Make a Claim

  1. Contact your insurer and request a terminal illness claim
  2. Provide a letter from a consultant confirming diagnosis and prognosis
  3. Complete insurer’s claim form
  4. 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).

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