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Terminal illness cover

Life insurance for the terminally ill is a way you can achieve peace of mind for the future.

Terminal illness cover helps protect you and your family from the financial burden of such an illness and the prospect of not being able to work in your final months. It's included as standard with Post Office Life Insurance policies.

What is terminal illness cover?

We all hope the worst will never happen. But it’s important to plan ahead to give yourself peace of mind. That’s why some people take out terminal illness cover.

It’s an extra layer of life insurance that pays out if, after you’ve taken out a policy, you’re diagnosed with an illness doctors confirm will prove fatal within a certain time.

It’s different to standard life insurance, which leaves your loved ones a sum of money if you pass away during the policy term. With terminal illness protection, you and your loved ones get the payout before you die.

You’ll receive the payout if a doctor can confirm your illness is estimated to end your life within 12 or 18 months. And, of course, you won’t be expected to pay anything back if you live longer.

What is a terminal illness?

When it comes to insurance, ‘terminally ill’ means you’re diagnosed with a sickness that’s expected to claim your life within 18 months. For example, an aggressive or advanced stage of cancer.

Faced with such a diagnosis, terminal illness cover could give you some much-needed financial support. And, as Marie Curie explains, you can access other forms of support too. 

Critical illness cover is different

If you’re diagnosed with a serious condition, compare terminal illness cover with critical illness cover. The two differ. 

Critical illness cover is an option you add onto your policy. It pays out if you develop a serious condition that could make it harder to live your life as normal, such as a heart condition or stroke.

While not terminal, such an illness could have a critical effect on how you live, your cost of living and ability to earn for your family.

Critical illness cover

Post Office Life Insurance with Terminal Illness Cover

It’s important to clearly understand what 'terminal illness' and 'critical illness' mean in your insurer’s eyes. Check your policy wording for their definitions. Terminal illness cover is included from day one as standard with a Post Office Life Insurance policy. You can also add extra protection by buying our Critical Illness Cover with any of these life cover policies. For our full definition of terminal illness please check our terms and conditions.

  • Payment decrease chart icon

    Decreasing term life cover

    Decreasing term life cover is designed to pay off an outstanding debt like a repayment mortgage. The cover amount decreases similarly to how the outstanding balance of a mortgage reduces.

  • Payment level chart icon

    Level term life cover

    Level term life cover offers a fixed cash lump sum payable upon the policyholder’s death. It can also be used to pay off debts. But it’s also used to leave a legacy or help loved ones cope with a range of financial considerations.

  • Payment increase chart icon

    Increasing term life cover

    Increasing term life cover is a way to reduce the impact of inflation on the money you leave behind for your loved ones. Your cash sum paid out will increase annually in line with retail price index, up to a maximum of 10%.

  • Over 50s icon

    Over 50s life cover

    If you’re between 50 and 80, this whole-life cover can help you leave a lump sum behind, perhaps to help pay for a funeral or leave a gift for your loved ones. Potential payouts are much smaller than for term policies, so aren’t designed to pay off large debts such as a mortgage.

Common terminal illness questions

  • Most people will be able to get terminal illness cover, unless they already have a pre-existing condition that could prove terminal.

    Once you have terminal illness insurance in place, you’d be considered for a payout only when a doctor or specialist confirms the diagnosis. Some insurers may also ask for an extra, independent review of your condition for confirmation.

  • Terminal illness cover is often included in life insurance policies but you shouldn’t just assume this is the case with your own. If you have life cover already or are thinking about taking out a standard life insurance policy, ask about whether terminal illness cover is included. If it isn’t, you may be able to add it by paying an extra premium.

    Some people may receive terminal illness insurance as a benefit at work. This will depend on the benefits package and any insurance on offer. And, since you’ll be getting this as a work benefit, you won’t be able to take it with you when you change jobs.

    Generally, as with most life insurance policies, you’ll get a more competitive policy if you’re healthy and relatively young. It could be worth getting your own terminal illness cover anyway, so you don’t have the hassle of organising a policy later in life when premiums may be more expensive.

  • Read more life cover FAQs

Post Office life cover options

  • Life Insurance

    Choose between level, decreasing or increasing term insurance, each designed to offer you peace of mind based on your circumstances.

    Discover Life Insurance
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  • Over 50s Life Cover

    If you're aged between 50 and 80, we could help you leave a cash sum for your family or towards your funeral costs.

    Discover Over 50s Life Cover
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Need some help?

Life Cover help and support

To make a claim, find answers to common questions, access bereavement and wellbeing support or contact us for something else:

Visit our Life Cover support page

Important information

Life insurance terms, conditions and key facts

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About our life insurance

Post Office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration. If you buy Post Office Life Insurance over the telephone or online via the Post Office website, it is arranged and sold by Neilson Financial Services Limited, following an introduction by Post Office Limited. If you buy Post Office Life Insurance online via a price comparison website, it is arranged and sold by the firm that provides the price comparison website services.

Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.