What is terminal illness benefit?
Terminal illness benefit (TIB) is a feature included in most standard UK life insurance policies at no extra charge. It allows you to claim your life insurance payout early — while you're still alive — if you're diagnosed with a terminal illness and your doctor confirms you are unlikely to survive more than 12 months.
How does it work?
If you receive a terminal diagnosis and meet the policy criteria:
- Contact your insurer and begin the claims process
- Provide medical evidence from your consultant confirming the prognosis
- The insurer assesses the claim
- If approved, the full life insurance sum assured is paid immediately — as a lump sum, while you're alive
Once TIB pays out, the life insurance policy ends — there is no additional payout on death.
What counts as "terminal"?
Policies vary, but most require a registered medical practitioner (usually a consultant) to confirm that you are expected to die within 12 months, despite treatment. Some policies extend this to 18 or 24 months.
Is terminal illness benefit the same as critical illness cover?
No — terminal illness benefit is included free in most life policies and pays on end-of-life diagnoses. Critical illness cover pays for many serious conditions you can survive, at any stage — not just terminal cases.
Frequently Asked Questions
Most do — but check your policy documents to confirm. Some older or very cheap policies may not include it. It's typically listed in the policy summary.
Yes — you remain the life assured and can still claim TIB. The payout goes to the trustees, who then distribute it according to the trust deed.