Terminal Illness Insurance (known as Accelerated Death benefit in North America) pays out a capital sum if the policyholder is diagnosed with a terminal illness from which the policyholder is expected to die within 12 months of diagnosis, by a physician who specialises in that illness or condition.
Terminal Illness Insurance is a form of insurance that is often added to a life insurance policy or a Mortgage Life Insurance policy by the insurance company issuing the policy. Terminal Illness Insurance is not available as a separate insurance policy.
If a life insurance policyholder also has terminal illness insurance, then he/she has the benefit of knowing that if he/she is diagnosed with a serious illness and is expected to die within 12 months of diagnosis, then the combined policy will pay out straight away rather than waiting for the policyholder to die (as would happen if the policyholder did not have terminal illness insurance).
Do not confuse terminal illness insurance with critical illness insurance. The two forms of insurance are very different.
Famous quotes containing the words terminal, illness and/or insurance:
“All sin tends to be addictive, and the terminal point of addiction is what is called damnation.”
—W.H. (Wystan Hugh)
“The more I read and the more I talked to other parents of children with disabilities and normal children, the more I found that feelings and emotions about children are very much the same in all families. The accident of illness or disability serves only to intensify feelings and emotions, not to change them.”
—Judith Weatherly (20th century)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,—if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892–?)