Terminal illness cover launched

Steve Wright

General manager of product Steve Wright said the insurer had spotted a market opportunity to cover people who did not need a death benefit.

He said the insurers' Terminal Illness Cover would be used as an asset protection device, particularly by older people who had money in the bank to support a surviving spouse but wanted to insure against the costs of care if they suffered a terminal illness.

It pays out if a patient is likely to die within 12 months but does not pay out on death, so it is cheaper than life cover.

The cover can also be used for children under 10, because it is not a death benefit.