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)
“... how I understand that love of living, of being in this wonderful, astounding world even if one can look at it only through the prison bars of illness and suffering! Plus je vois, the more I am thrilled by the spectacle.”
—Edith Wharton (1862–1937)
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.””
—Emma Goldman (1869–1940)