Home life assurance

77shoestring

I have a decreasing life assurance policy should one of us die my home would be paid for


I did not take out critical illness....My husband has be diagnosis with lung cancer.


Does this mean should he die they will not pay out

kingstreet

If he is a joint life assured, the policy will pay out to the survivor if/when he dies, if that takes place during the policy term.

If the plan has terminal illness cover, the benefit may be paid if a consultant gives a prognosis that he won't survive twelve months. Some plans don't have this benefit in the last year to eighteen months of the plan, so read your contract details carefully.

77shoestring

Yes we have a joint plan, were not covered for terminal illness


I was concerned because we didn't take out critical or terminal illness, that it won't pay if he should die. Making my policy worthless.


Are you saying it will pay out should he die?

kingstreet

Many decreasing term assurance products have terminal illness cover included free of charge as standard. Are you 100% sure yours doesn't?

Critical illness cover is a separate add-on which pays out on diagnosis of any of a list of conditions which do not have to result in a terminal diagnosis.

If has has life cover, it will pay out if he dies. The above issues are related to it paying out while he is still alive.

77shoestring

It's hard to understand, It states
Death and terminal illness benefit:
This provision applies only if the schedule states that death and terminal illness benefit applies to the policy


Cover letter states were cover for life assurance but not critical illness

kingstreet

Ignore critical illness.

Contact your insurer and establish if there is a terminal illness bolt-on on your life cover.

If there is, ask them the qualifying period (usually twelve months) and if the option ends close to the end of the contract if that may be an issue for you.

77shoestring

Ok it states terminal illness no greater then 12months and their to receive notice of illness eighteen month before expiry date


So I take it if he's considered terminal and has 12 months or less to live it will pay out?

kingstreet

That would be usual, yes.

77shoestring

ok he isn't consider terminal at the mo, should I contact them in regards to his illness or wait


Thank you for all your help xx

ACG

They do not need to know about any changes to his health, so no point making them aware.

77shoestring

Thank you ACG