Case study – A terminal illness insurance claim

Case study – A terminal illness insurance claim

Our client

A 64-year-old gentleman approached us, he had previously arranged a level term life insurance policy over an original term of 7 years with a sum assured of £30,000 back in February 2009.

He informed us that he has been diagnosed with stomach cancer and the prognosis isn’t very good. After a brief discussion, we explained how insurers define terminal illness cover. We told him that we would be happy to help him make a claim and started the process.

This was swiftly followed up by the insurer via a brief telephone conversation with our client. The claim has now been agreed and the benefit will be paid in full in the next few days.

A terminal illness insurance claim – the small print

The key point to this case is the ‘small print’ included within this particular insurer’s terms and conditions. This insurer will pay any valid terminal illness claim even if that claim is made within the last 12 months of the policy. This gentleman’s policy is due to expire in 10 months. A minority of insurers do not cover a terminal illness diagnosis which is made within the last 12 months of a policy’s term. One of these insurers may have told him that it would not constitute a claim as per their policy wording.

This is, of course, a very sad and difficult situation for anyone to be dealing with. Particularly at such a young age, however, the insurance policy has paid out and this will help to provide some small comfort to the gentleman knowing that his family will be taken care of.

Our advice comes with no obligation or hidden costs.  This means you don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.

All our case studies are based on actual client scenarios, many of which pre-date 2020.  We are confident that the acceptance decision made by the insurers would still be offered. Although it is likely that the rates will have changed, your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

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Next steps

Whilst you are welcome to get a quote online we would recommend you talk to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

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