Engage Mutual is now expecting over-50s customers to claim for terminal illnesses on its life cover policy following the end of a two year moratorium.
Two years ago Engage Mutual added to its guaranteed over 50s life cover plan to enable pay out for serious and terminal illness.
Maria Harris, sales director at Engage Mutual said: "With the two year moratorium on the first policies sold now at an end, we are expecting to start receiving claims through for cash lump sums from clients who find themselves in this situation. They should provide a welcome financial helping hand at a time they might need it most."
The plan is believed to be the first of its kind in the over-50s market, as normally such plans will just pay out upon the death of the policyholder.
Policyholders diagnosed with a terminal illness after the end of the moratorium period, which applies in the first two years of the plan, can claim the full sum assured, in which case the policy would close.
Those diagnosed with a serious illness after the moratorium period can claim 20% of the full sum assured. The serious illness benefit can be claimed once, leaving 80% of the sum assured available in the event of a terminal illness diagnosis, or to be paid on death.
Engage offers cover levels up to £40,000; a wide range of premiums from £10 to £75 per month dependent on the sum assured; and maximum accidental death benefit of £48,000 (the policy pays out three times the level of cover to a maximum payout of £48,000 if death occurs in the first two years.
