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15 Cards in this Set
- Front
- Back
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When Gary was diagnosed with bowel cancer at the age 50, he was able to use the lump sum he received under his insurance policy to pay off his outstanding mortgage. Which of the following types of insurance did Gary have ? |
Critical illness insurance. Private medical insurance covers costs associate with treatment while income insurance pays a regular income rather than a lump sum. Long-term care insurance is designed to meet the costs of care in later life |
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Connor is a self-employed painter and decorator, is considering taking out income protection insurance. Should he opt for a short deferred as possible? |
True. Connors income will reduce very rapidly if he is unable to work. You should opt for a short deferred period instead of a long deferred period. |
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Can you pay tax and national insurance on the income you receive from income protection insurance? |
Yes, if The policy has been range as part of a group scheme with your company instead of an individual basis |
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What is proportionate benefits? |
Proportionate benefits would be paid until retirement, death or the end of the policy. |
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Hannah, who retired last year, has developed arthritis. She needs to hip replacement. Which insurance policy might she be eligible to claim benefits? |
Private medical insurance |
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Can a policyholder of accident, sickness and unemployment insurance claim if she resigns from her job? |
False. ASU benefits I'm not available to policy holders who resigned voluntarily. |
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Immediate needs annuity, who are the benefits paid to? |
The benefits I paid directly to the care provider but they are tax-free. If a client needs to go into a home. |
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What is a general insurance policy principle? ( Indemnity) |
Policy holders should be restored to the same position they are in before the event occurred that led to the claim. indemnity policy |
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Payment protection insurance: |
Payouts are typically limited to 12 months. |
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In relation to insurance for commercial purposes, pecuninary loss is a loss resulting from: |
A defaulting creditor |
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What is the mortgagee? |
The mortgagee he is the lender, that provides the mortgage loan. |
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What is the mortgagor? |
They are the mortgage borrower. |
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Pecuniary loss is: |
A loss resulting from a defaulting creditor. |
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Payment protection insurance pays out typically for how long? |
12 months. |
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What are the four different types of insurance cover? |
Accident, sickness and unemployment insurance (ASU) - This is the design to only cover mortgage repayments.
Critical illness cover- is restricted to specific conditions and is usually paid as a lump sum which may not cover outgoings over a prolonged period of time.
Income protection insurance- To meet all essential outgoings if she's unable to work due to medium or long-term illness. Paid 12 months max
Private medical insurance- only covers directly associated with medical treatment |
