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IF7 > 4A-C > Flashcards

4A-C Flashcards

1
Q

Hospital treatment insurance other names

A

Surgical cash, major medex, surgery cover

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2
Q

Major medex policy definition

A

Form of budget PMI that typically pays a given amount for specified treatment only – typically doesn’t cover out-patient or pyschiatric

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3
Q

Cancer only cover

A

Fixed cash lump sump on the diagnosis of a specified cancer

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4
Q

7 typical travel insurance policy inclusions:

A
  1. Emergency medical/surgical
  2. Emergency dental
  3. Evac/repat
  4. Accommodation refund if not possible to return home
  5. Travel expenses of a relative travelling
  6. Loss of baggage
  7. 24/7 emergency helplines
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5
Q

Travel insurance exclusions

A

Where the purpose or the visit is to have medical treatment and pre-existing conditions (unless pre-agreed)

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6
Q

Personal accident insurance

A

Pays out a fixed sum if the insured has an accident that results directly in personal injury – quantity depends on severity of accident

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7
Q

PA insurance for temporary disabilities

A

May pay a weekly sum for 12-24 months

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8
Q

Sickness insurance

A

Weekly or monthly benefit if the insured is unable to work due to illness

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9
Q

Sickness insurance limitations

A

Usually 12-24 months only

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10
Q

Reason for changing sickness insurance policy terms

A

Statutory changes, e.g., IPT

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11
Q

Unemployment insurance

A

Pays a weekly or monthly benefit if the insured loses their job or the business goes into involuntary liquidation

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12
Q

ASU insurance

A

Includes accident, sickness and unemployment in one policy

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13
Q

Payment protection insurance

A

ASU insurance designed to protect loan payments – also known as creditor insurance

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14
Q

Maximum PPI benefit

A

– Usually linked to monthly loan repayment amounts (e.g., 125% of the borrower’s monthly mortgage payment)

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15
Q

What determines the amount of benefit payable by PPI?

A

Continuing income received by the insured

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16
Q

Why do PPI policies have a short lifespan

A

Buyers feel more at risk during the early years – mortgage payment becomes a smaller proportion of income over time

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17
Q

LTC in the NHS

A

NHS has very little responsibility

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18
Q

NHS and Community Care Act 1990

A

Passed responsibility for LTC funding from central government to local authorities

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19
Q

Care Act 2014

A

Individuals expected to pay for their own care if they can afford it, but capping the amount regardless of savings or assets

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20
Q

Dilnot Commision changes

A

– Lifetime cap on all personal contributions towards care costs
– Increase in the lower capital threshold and upper capital threshold
– PEA and minimum income guarantee rises with inflation

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21
Q

PEA

A

Personal Expenses allowance

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22
Q

LTC insurance

A

Provides a pre-selected monthly income to meet the cost of care home or nursing fees

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23
Q

Disabled definition

A

When a member is no longer able to perform a set number of ADLs

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24
Q

ADLs abbreviation

A

Activities of Daily Living

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25
Q

ADLs

A
  1. Washing
  2. Dressing
  3. Feeding
  4. Toileting
  5. Mobility
  6. Transferring
26
Q

Pre-funded LTC policies

A

Customer pays monthly sum fixed into a policy while still in reasonable health

27
Q

Immediate needs/point of need policy

A

Customer pays a capital sum to an insurer only once the need for care has arisen – insurer invests the money to generate max income to pay for care

28
Q

Long-term income protection (IP)

A

Policy provides a replacement monthly income when a customer is unable to work (after a pre-set deferred period) because of sickness or an accident

29
Q

When do IP policies cease?

A

When the insured reaches a pre-set retirement age

30
Q

Short-term income protection

A

Payments typically for one-five years

31
Q

Advantages of short-term underwriting

A
  1. Lower cost
  2. Less onerous underwriting
  3. Fewer ratings
32
Q

Reasons for cancelling IP

A
  1. Policy reaches termination date
  2. Death
33
Q

Taxation on IP

A

Long-term, so not subject to IPT.

34
Q

ESA abbreviation

A

Employment support and allowance

35
Q

ESA definition

A

Main state benefit for those who cannot work due to illness or disability

36
Q

What is income-related ESA being replaced with?

A

Universal Credit

37
Q

IP deferred period

A

– Usually 3m-1yr
– Shorter periods available for self-employed

38
Q

Hidden benefit of IP

A

Helping customer get back to work before needing a claim

39
Q

How does Group IP work?

A

Payments made to the employer, who pays them to the employee in the form of a salary

40
Q

Employee IP taxation

A

Subject to P11D and NICs

41
Q

Individual IP taxation

A

Tax-free

42
Q

What happens if someone with IP insurance returns to work on a part-time basis or accepts a lower paid job?

A

Policy usually pays a proportionate benefit

43
Q

Critical Illness

A

Predetermined lump sum for:
1. the diagnosis of a range of specified illnesses
2. undergoing one of a range of specified hospital procedures

44
Q

Rules for paying CI

A

– Member must survive a specified period, usually 10 to 30 days
– When member has a TPD

45
Q

TPD

A

Total permanent disability

46
Q

TPD definitions

A
  1. Unable to do own occupation ever again
  2. Unable to do a suited occupation again
  3. Unable to do specified work tasks ever again
  4. Unable to look after yourself ever again
47
Q

Waiting period before CI claims will be accepted

A

Specified waiting period, e.g., six months before paying the benefit

48
Q

When does CI cover expire

A

At retirement age

49
Q

Which policies does a waiver of premium apply to?

A

Many long-term and some short-term policies

50
Q

Waiver of premium

A

After usually a three- or six-month deferred or waiting period, the insurer pays/waives premiums if they are unable to work due to illness – usually underwritten

51
Q

When do premiums stop being waived

A
  1. When reaching retirement age
  2. When returning to work
  3. Death
52
Q

Typical health screening frequency

A

– Generally carried out every 2 years or so

53
Q

Who pays for private GP prescriptions

A

The patient

54
Q

Private GP examples

A
  1. Private GP
  2. Walk-in medical centre
  3. Company GP
  4. VGP
55
Q

Ways for employers to provide health benefits

A
  1. Free, but either opt-in or opt-out
  2. Free, but flex
  3. Voluntary
56
Q

Things for individuals to consider when taking out PMI

A
  1. Priorities
  2. Risk to livelihood
  3. Health
  4. Affordability
57
Q

What to consider when choosing a policy

A
  1. What is available
  2. Which benefits are most important
  3. Affordability
  4. Overall value
58
Q

Fact-find

A

Undertaken by an ISA or intermediary to ascertain details about a customer and their needs

59
Q

Hard facts

A

E.g., age, income, state of health

60
Q

Soft facts

A

Personal priorities and wants

IF7 (11 decks)

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