6. Other insurance-based protection policies

Question 1

Key features of ASU insurance (5)

Answer 1

• income paid if unable to work
• cheaper alternative to IPI; no medical underwriting
• renewed annually; provider can increase prems/cancel cover
• deferred period and max timescale (1-2yrs) apply
• additional lump sum benefits for certain events, scaled for severity

Question 2

Main requirement (1) and exclusions (4) to ASU insurance

Answer 2

• must be actively & continuously employed prior to proposal

Excludes:
- redundancy expected imminently before proposal
- dismissal or voluntary resignation
- unemployment cover for self-employed
- sickness from pre-existing medical conditions

Question 3

Key features of payment protection insurance (3)
Deferred period & cover length

Answer 3

• protects repayment of loan/mortgage in event of ASU
• can extend to other expenses/bills
• deferred period 30-60 days, covered for 12/24 months

Question 4

Key features (2) and general exclusions (4) of private medical insurance

Answer 4

• covers acute conditions (not chronic)
• premiums increase with age & location

General exclusions:
- optical/dental/chiropody/cosmetic
- maternity care
- self inflicted eg alcohol/drugs
- alternative medicine

Question 5

Key features (2) and examples (3) of hospital cash schemes

Answer 5

• cover expenses arisen from hospitalisation, not refund of medical costs
• deferred period + pre-existing conditions excl

Examples:
- benefit per-night or lump sum for long-term
- 50% refund of dental/optical care
- lump sum on reaching advance stage of pregnancy