This agreement is made when a person wants assurance, that if he/she is diagnosed with a sickness and has less than 12 months to live, their family members don’t suffer financially, through a large once off amount, as a result of treating the sickness or adapting to the changes in their lifestyle. Examples: Cancer, HIV, etc.
Life Insurance/cover policies for diagnosis of terminal illness:
Life cover policies usually include cover for terminal illness. This pays out in the event that the policyholder is diagnosed with a terminal illness (one listed on the insurance provider’s list of covered conditions), and only has 12 months to live.