Five vital questions to ask . . .

HOW long will it last? Some policies are for a fixed period of time, and if you die after they expire you will not receive a payout.

WILL my premiums stay the same? Reviewable premiums may be cheap to begin with, but they typically increase as you get older and develop more health problems.

DO I have a pre-existing condition? If you fail to declare a health condition, your loved ones won’t receive a penny if you die.

AM I planning to move abroad? Some policies will not pay out if you move overseas because the insurer may consider the country a riskier location.

WILL my payout shrink? If you buy level term life insurance, your payout will remain the same. However, a decreasing term policy will cut your payout over time.

but it ruled in Aviva’s favour. Since taking early retirement due to his illness, Peter has had to draw down £100,000 from his pension and downsize his house in exeter.

His policy, taken out in 2013, had only a six-year term and expired in April last year.

The father of four hopes to take legal action against Aviva, but cannot afford to do so at present.

He says: ‘i try not to think about the fact i may never get my payout, because i feel awful when i do and i know how important mental health is when you’re fighting a terminal illness.’

An Aviva spokesman says: ‘ We understand Mr Bull remains disappointed that we did not pay his claim, but the medical evidence that we received during those years did not support the criteria for terminal illness benefit.’

An Association of British insurers spokesman says: ‘insurers know this is an extremely difficult time for policyholders and their families, so will assess claims based on the individual’s circumstances as quickly as possible.’