I would like to ask about insurance. My husband has cancel stage 4 metastatic rectal with multiple liver mets. the doctor told him his expectation of life is 1 years to 2 we do not know what to do with insurance because his insurance cover is ended 2025 is Scottish Widows we should claim now or wait could please give us any advice please.
You sincerely Gosia
Hi
Thanks for getting in touch. I’m so sorry to hear about your husband’s diagnosis, this must be an incredibly difficult time for you both.
Some life assurance policies include a ‘Terminal Illness’ benefit. Terminal illness benefit means that if doctors expect an individual to have a prognosis of less than 12 months, the policy may pay out early. The pay-out can be kept even if the person claiming lives longer than 12 months. It’s worth noting that some policies don’t allow a terminal illness claim in the last 12-18 months of the policy term. On some occasions the terminal illness claim may pay out slightly less in comparison to a payment on death, so it can be worth checking before you decide to claim.
There is no right or wrong answer as to whether you should claim now or not. A lot will come down to you and your husband’s circumstances. For example, will the pay-out help to pay off any debts or perhaps a mortgage? Could it be used for adaptations or improvements around the home? Would having the money available now allow you to go on a holiday or live more comfortably? It’s also important to know that receiving a lump sum payment could affect your entitlement to any means tested financial support.
If you decide to make a claim, but it was declined due to medical evidence suggesting your husband may have longer than 12 months, it’s worth noting that providing the premiums are still paid, the cover will not stop. This means a claim can still be made later down the line if your husbands circumstances changed.
I hope this has provided you with some useful information, but it may be worthwhile discussing your insurance policy with us as there could be other additional features to look out for. It may also be beneficial to chat to us about your wider circumstances such as mortgages, pensions or any other insurances. You can speak with a Financial Guide on the telephone number below or via webchat.
We also have a Welfare Rights team who can chat to you about any benefits you and your husband might be entitled to. They can be contacted via webchat or over the phone on the number below. Our Information & Support team are also available should you need any emotional support or if you have any non-financial questions to ask. They can be contacted via webchat.
To get through to all the above services over the phone, our Supportline telephone number is 0808 808 0000, please just select the service you need.
Yours Sincerely,
Joe
Financial Guide
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