Life Insurance Terminal Illness

The key difference between terminal and critical illness is that while terminal illness cover only pays out if you’ve been given 12 to 24 months to live, critical illness in life insurance refers to a serious medical condition or illness which is listed in the policy as a condition that would trigger a lump sum payment from the insurer. This is the case regardless of whether the critical illness is considered terminal, such as non-terminal cancer. Such conditions are covered under a different type of insurance known as trauma cover, or critical illness cover.

To make a terminal illness claim, you’ll need to contact your life insurer and provide them with evidence of your diagnosis, such as a medical certificate or report from a qualified medical practitioner (or practitioner). Your insurer will then assess your claim and may request additional information or evidence, after which you can receive an outcome on your claim.

Life cover in Australia comes without a maximum amount, meaning you can select how much to insure yourself for in the event of your death or terminal illness diagnosis. The more you’re insured for, the more your policy will cost, so consider the amount you or your family may need in the late stages of your life or after you pass away.

In most cases, you won’t be required to repay your life insurance benefit if you outlive your life expectancy as indicated by your specialists. However, once you receive your payout, your coverage will cease and you’ll no longer be able to receive any benefits or coverage from that policy.