"The payout means that I've been heard. That's the biggest thing for me and that's emotional just within itself."
She says Te Wānanga o Aotearoa has now apologised for putting her through the ordeal and offered to host a farewell ceremony for her to acknowledge her 18 years of service.
"The resolution that was met has been amicable," she says.
Nuku-Stanshall says she has received lots of messages of support and koha from those she has taught and influenced over the years.
"I want to thank kaimahi, tauira, community, whānau and friends, everybody who came on to support me on my drive on what I was going for."
Nuku Stanshall was forced to move from Tauranga to Palmerston North to live with her daughter after she could no longer afford to live in the Bay of Plenty because of her illness and inability to work.
She will use the insurance money to pay her bills and build a granny flat on her daughter's property.
"It will give me some space and independence for myself."
She hopes that other staff members of Te Wānanga o Aotearoa will not have to go through the same experience that she endured.
Te Wānanga o Aotearoa chief executive Nepia Winiata says the institution sends its thoughts and aroha to Nuku-Stanshall.
"We're grateful that we've been able to continue supporting Whaea Ruth through what has been a very difficult time for her and to work with the insurer to waive the under 65 years old eligibility criteria, leading to payment of the early terminal illness policy sum this week."