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Terminal Illness

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What is terminal illness cover?

Terminal illness cover is included in your Beagle Street Life Insurance as standard. You don’t need to select this option within your application as it is automatically added.

If you have been diagnosed with less than 12 months to live, you could claim for an early pay-out from your Life Insurance policy.

What you need to know?

  • Terminal illness cover can only be claimed with a valid Life Insurance policy, not if the policy is no longer in place.
  • It provides an early pay-out from a successful claim, not an additional pay-out. This means the policy will cease.
  • Doesn’t pay-out in the last 12 months of your policy.
  • If you have written your Life Insurance policy in Trust then a terminal illness cover pay out would still be paid directly to you.
  • If a pay-out is received early then it will no longer be in Trust, meaning it could be subject to inheritance tax.

The difference between terminal and critical illness

Terminal illness and critical illness are often misunderstood to be the same. There are some distinct differences between the two. Take a look at the table below.

Terminal illnessCritical illness
Pay-out upon diagnosis of under 12 months to liveClaims can be made upon diagnosis of a pre-defined critical illness
Automatically included in every policyNeeds to be added to your policy in the application
Acts as an early pay-out from your Life InsuranceActs as a separate pay-out, so you could claim for critical illness and still claim for Life Insurance
Cannot claim pay-out in the final 12 months of the policyPay-out can be claimed any time within the policy term

Other free benefits with your policy

Will

This is a legal document where you can state who will receive your assets after you die. Contact us to arrange your written Will.

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Trust

Write your Life Insurance policy in Trust. You can select Trustees with responsibility to distribute a pay-out to your loved ones.

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Bereavement counselling

In the event of your death your loved ones can contact our specialists for help and support during this difficult time.

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