Client Profile
Name: John
Occupation: Real estate business owner
Insurance Type: Life Insurance (with Terminal Illness Benefit)
Sum Insured: AUD $1,000,000
Claim Amount Paid: AUD $1,000,000
Case Background
In early 2018, John, a successful real estate business owner, took out a life insurance policy with a sum insured of $1,000,000. As a husband and father to young children, John’s main motivation was to protect his loved ones in case anything unexpected happened to him.
Medical Evidence
In 2020, John was diagnosed with cancer. His treating specialist issued a report confirming that, based on the progression of the disease and available treatments, John was estimated to have no more than 24 months to live.
John’s life insurance policy included a Terminal Illness Benefit, which allows the full life insurance payout to be claimed early if the insured is medically certified as having less than 24 months to live.
Medical Assessment
The insurer assessed John’s eligibility for the Terminal Illness Benefit in accordance with the policy terms, which state:
A Terminal Illness Benefit can be paid if the insured person is diagnosed with a terminal illness and is unlikely to survive beyond 24 months from the date of certification by two qualified medical practitioners, one of whom is a specialist.
All required medical documentation was submitted, including:
- Diagnosis and prognosis reports from John’s oncologist
- Supporting certification from a second medical practitioner
The insurer confirmed that the policy conditions were met and approved the full benefit.
Claim Resolution
John received a lump-sum payment of $1,000,000 under the Terminal Illness Benefit provision of his life insurance policy. Although he could no longer provide financial support through work, the payout allowed John and his family to:
- Pay off their home loan, removing a major financial burden
- Provide long-term financial security for his wife and minor children
- Focus on spending meaningful time together without the stress of financial uncertainty
Key Insights
- Life insurance is not just for after death — many policies include terminal illness benefits that allow early access to the full sum insured.
- Having the right protection in place gives families peace of mind, even in the most difficult times.
- A timely claim can reduce financial stress, allowing families to focus on health, relationships, and emotional wellbeing.
- Business owners and parents should strongly consider life insurance as part of long-term financial planning.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Insurance (aka: Hippo Wealth), with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippoinsurance.com.au
