Terminal illness cover is a built-in feature of every panel Life Cover policy that pays the sum insured early if a medical practitioner certifies you are likely to die within a stated timeframe. Eight of the nine panel insurers use a 24-month threshold. TAL uses 12 months.
This answer covers the panel only. The timeframe matters: a 12-month threshold is harder to satisfy than a 24-month threshold because the prognosis must be more advanced. The structure pays you the death benefit while you are still alive; once paid, the policy ends.
Panel comparison at a glance
| Insurer | Threshold (outside super) | Certification |
|---|---|---|
| AIA | 24 months | Specialist Medical Practitioner |
| Zurich | 24 months | Treating + (if required) specialist |
| TAL | 12 months | Standard medical practitioner |
| OnePath | 24 months | Medical practitioner |
| ClearView | 24 months | Two medical practitioners; at least one specialist |
| NEOS | 24 months | Specialist |
| Encompass | 24 months | Treating specialist + (if required) approved specialist |
| Acenda | 24 months | Treating specialist |
| Futura | 24 months | Specialist |
When the policy is held inside super, the SIS Act Regulation 6.01(2) terminal medical condition test also applies: 24-month life expectancy certified by two medical practitioners, at least one practising in an area related to the condition.
How the certification works
Two certifications are typically required for super-held cover; outside super, the requirement varies by insurer (some accept one specialist's certificate; others require two). The certificate must address:
- The illness or injury
- The reasonable opinion that the illness is likely to result in death within the threshold period
- That the prognosis applies regardless of any reasonable treatment that may be undertaken
Where each panel insurer documents the definition
- AIA Priority Protection PDS (Version 32, 9 November 2025), Section 2.1 (Life Cover): "Terminal Illness means the diagnosis of an illness which, in the reasonable opinion of an appropriate specialist Medical Practitioner, is likely to result in you passing away within 24 months of the diagnosis regardless of any treatment that may be undertaken." For Superannuation Plans, AIA requires two Medical Practitioners (one a specialist practising in an area related to the condition).
- Zurich Wealth Protection PDS (1 November 2025): "terminal illness means any condition caused by sickness or injury, where despite all reasonable medical treatment, the life insured is expected to live for no more than 24 months." Certification by treating practitioner, and a specialist if Zurich requires.
- TAL Accelerated Protection PDS (12 December 2024), Section 9 glossary: "Terminally Ill and Terminal Illness means an illness or condition where, after having regard to the current treatment or such treatment as the Life Insured may reasonably be expected to receive, the Life Insured has a life expectancy of less than 12 months." Super-held cover also requires the SIS Terminal Medical Condition test.
- OnePath OneCare PDS (1 October 2025), Terminal Illness Benefit section: "is likely to result in the life insured's death within 24 months... are not expected to extend the life insured's life expectancy beyond 24 months from the date of certification." An Extended Terminal Medical Condition Benefit may continue payment in certain bed-confined scenarios.
- ClearView ClearChoice PDS (13 May 2024, update 5 June 2025): "Terminal illness means: You are certified by two medical practitioners as suffering from a sickness which is incurable and for which: your condition has progressed to a point where your death is medically expected to occur within 24 months while adhering to standard treatment protocols available at the date of certification." At least one practitioner must be a specialist.
- NEOS Protection PDS (6 December 2024), Life Cover section: 24-month threshold, specialist certification required.
- Encompass Protection PDS (26 September 2025), Section 1 Life Cover: outside super, "likely to lead to death within a period that ends no more than 24 months from the date we are notified in writing by the approved doctor." Inside super, two doctors required, one a specialist approved by Encompass. PDS also confirms: "You don't have to return the Terminal Illness Benefit paid if you survive the 24 month period referred to in the definition of terminal illness."
- Acenda Insurance PDS (27 September 2025): outside super, treating specialist's opinion of death within 24 months. Inside super, two doctors, one specialist approved by Acenda, within the 24-month Certification Period. Acenda also offers an optional Terminal Illness Support insurance that pays an additional benefit if the client survives 30 days after certification, designed for those who outlive the 24-month threshold.
- Futura Protection PDS (1 October 2025): "certifies that you suffered from an illness, or have incurred an injury, that is likely to result in your death within 24 months of certification regardless of any reasonable medical treatment that may be undertaken." Inside super, the SIS Terminal Medical Condition test also applies.
What the payment is used for
The sum insured is paid as a lump sum and is typically tax-free in the hands of the policyholder (outside super) or to a tax dependant (inside super). Common uses include:
- Specialist treatment not covered by Medicare or private hospital cover
- Travel for treatment
- Home modifications for accessibility
- Clearing debts so the family is not left with them
- Palliative care, in-home nursing
- Living expenses so family can step back from work
Once the terminal illness benefit is paid, the Life Cover policy ends. You cannot also claim the death benefit later; the two are the same sum insured paid early. Some panel PDSs note the policy survives long enough for outstanding administrative matters but the sum insured itself is consumed by the early payment.
What happens if you survive the threshold
The Encompass PDS makes the point explicit: surviving the 24-month period does not require repayment. The benefit, once paid, is yours. The same principle applies across the panel; the certification is a clinical opinion at the time, not a guarantee of timing.
Regulator anchor
The terminal illness payment regime sits inside the Life Insurance Act 1995 contract framework. The Insurance Contracts Act 1984 governs the contract's broader terms. For super-held cover, SIS Act Regulation 6.01(2) defines the parallel terminal medical condition test that the trustee must satisfy before paying the benefit out of the fund.
The Life Insurance Code of Practice 2019 requires terminal illness claims to be handled within the standard claims timeframes (acknowledge within 10 business days; decide within 6 months for straightforward claims; pay within 5 business days of approval).