What is terminal illness insurance?

Terminal illness insurance is a type of insurance that provides a lump sum payment if you are diagnosed with a terminal illness and have a life expectancy of 12 months or less. This type of insurance is designed to help you cover the costs associated with a terminal illness, such as medical bills, hospice care, and other end-of-life expenses.

When you take out a terminal illness insurance policy, you pay a monthly premium to the insurance company. If you are diagnosed with a terminal illness during the term of the policy, the insurance company will pay out a lump sum of money to you. This money can be used in any way you choose, whether to cover medical expenses or to provide financial support for your loved ones.

It’s important to note that terminal illness insurance is not the same as life insurance. While life insurance pays out a lump sum of money when you die, terminal illness insurance pays out while you are still alive if you are diagnosed with a terminal illness. This means you can use the money to help cover the costs of your illness and to make the most of the time you have left.

Examples of terminal illnesses

Terminal illnesses with a short prognosis could make you eligible to receive benefits. Terminal illness examples include:

Advanced-stage cancer. Advanced cancer cannot be cured. Cancers that are advanced and lead to death include lung cancer, brain cancer, gastrointestinal cancers, liver and colon cancers, and even some skin cancers
Different forms of dementia. Including Alzheimer’s Disease, dementia is a degenerative brain disease that eventually shuts the brain down, leading to death
Motor Neurone Disease (MND). MND gradually weakens the muscles and in the later stages of the disease, the muscles required for breathing fail, resulting in patients often passing away in their sleep
Lung disease. Lung diseases like pulmonary fibrosis can be terminal illnesses. Lung diseases are degenerative and eventually lead to an inability to take in enough oxygen
Neurological diseases. Diseases like Parkinson’s are degenerative and can lead to loss of control of your motor skills and bodily functions. These sorts of diseases tend to result in pneumonia or other conditions that can rapidly deteriorate your health
Advanced heart disease. Most people with advanced heart disease have a life expectancy of around a year, as your heart is unable to perform its function and is no longer able to beat regularly, causing a range of issues throughout your body like pooling blood and blood clots