Should I include Terminal Illness Insurance?

Terminal Illness Insurance is generally included at no extra cost on all Mortgage Life, Life and Critical Illness policies.

STEP 1 of 2

Type of cover

Life Insurance Mortgage Life Insurance

Cover Level (£)

Number of years

Do you want:
Critical illness cover
Family income benefit

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Are There Any Situations That Would Result In My Claim Being Refused?: Yes there are the usual exclusions. These are summarised below but you should carefully read the paperwork that comes with your insurance documents.
For how long will the policy continue to pay your mortgage?: The Mortgage Payment Protection Insurance will pay your mortgage for up to 12 months or up to when you return to work, whichever is the sooner.
Will a claim under a Mortgage Payment Protection policy affect any State benefits to which you may be entitled?: No. Whilst you are using Mortgage Payment Protection Insurance to replace your income and meet your monthly mortgage repayments, insurance payouts do not qualify as income in the eyes of the Benefits Agency or the Inland Revenue.
How long should you insure for?: For mortgage protection purposes you should also insure yourself for the same number of years that are remaining on your mortgage. The initial sum insured should always equal the capital sum outstanding on your mortgage.
Should you have a “Guaranteed” or a “Reviewable” policy?: A Guaranteed policy is usually better value overall but a Reviewable policy will be cheaper at the outset.

Terminal Illness Insurance will pay out if you are diagnosed with an illness from which a Doctor expects you to die within 12 months of diagnosis.

Insurance companies do not offer Terminal Illness Insurance as a separate, stand alone policy. It is always combined with another form of insurance.

But please ensure you know the difference between Terminal Illness cover and Critical Illness cover. Terminal Illness cover is not the same as Critical Illness cover.