June 17, 2019
How long does it take for a claim to be paid?

How long does it take for a terminal illness claim to be paid?

We are often asked by clients about the length of time it takes to pay out a claim on life insurance.

The honest answer is “as soon as possible”.  Each claim is different but in our experience, any delays are generally caused by waiting for documentation from third parties such as doctors or solicitors.

Our client

A recent example of the claim process was experienced by our client, Mr G.

We arranged a life insurance policy for our client, Mr G which started on 1st December 2018.

Mr G, a 54-year-old non-smoker in good health, required life insurance of £70,000 to provide financial security to his wife and dependent children should he pass away. He requested a term assurance policy running until his 90th birthday as longevity runs in his family.

The monthly cost of this policy was £31.78.* 1st December 2018

In March 2019, Mr G began to feel unwell and started to lose weight rapidly. He was referred to his local hospital and was absolutely devasted to be diagnosed with Grade 4 cancer. Grade 4 cancers tend to grow rapidly and spread faster than cancers with a lower grade. Mr G’s cancer is incurable and any treatment available is for palliative care only.

The Claim Process

Mr G contacted us on 25th April 2019 with his news and we immediately contacted the Insurance Provider to commence a Terminal Illness Claim.

Terminal Illness is an integral benefit of most life insurance policies.  Whilst the main aim of the policy is to pay out on the death of the policyholder, Terminal Illness ensures that the payment is made if the policyholder is diagnosed with a condition that is expected to lead to death within 12 months.

The insurance provider was able to obtain relevant details from Mr G in a short conversation over the telephone.  They then wrote to both Mr G’s GP and hospital Consultant for further details. This is a normal part of the claims procedure as client’s do not have the medical knowledge or expertise to give a full diagnosis.  This is also helpful as Mr G was still in shock and found it very difficult to talk about his prognosis.

How long does it take for a terminal illness claim to be paid?

The initial claim was made on 25th April. The insurance company received the medical reports on 12th June 2019 and they agreed the claim on 14th June 2019. 

The payment of £70,000 will be transferred to Mr G’s bank account within 5 working days.

We will continue to offer all support possible to Mr G and his family.

Client ID: 136007238

*Please note that the premiums provided are indicative only and are 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 but we would recommend you talk to one of our advisers.

Any quote that your adviser provides you with will take into account to 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.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

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