9 - Other insurance Based Policies Flashcards
Personal Accident and sickness insurance
How long does it last
Most contracts are annual but they can sometimes be taken out for shorter periods, e.g. for a business trip or a holiday.
Name 6 common areas of cover for personal accident and sickness cover
Death
Permanent disablement
Loss of an eye
Loss of leg, foot or toe
Loss of arm, hand, finger
Other specified injuries
What are the common benefits included in personal accident and sickness cover
Lump sum which varies based on severity
Refund medical costs
Weekly sickness benefit paid for 26/52/104 weeks if unable to work
Is there any tax relief on Personal accident and sickness insurance?
No
Who is personal accident and sickness cover aimed at
People needing to cover for one off events which aren’t covered by other policies
Why is personal accident and sickness insurance different to IP
short-term policy, not as good in long run
What does PMI do
Covers cost of private medical care
What type of illness is PMI designed for
Acute rather than chronic
What illness must firms provide examples of their approach to treatment for under ABI guidance
Cancer
How many principles are there for PMI according to ABI
4
Common definitions must be used
Each customer should get all information
Terms and conditions should explain what treatment is and not covered by policy
Customer should be told about charges
How to claim
Customer should get consumer guide (ABI are you buying private medical insurance)
What is basic plans of PMI
Basic coverage - accomodation, drugs and doctor fees not outpatient tretaments.. limits on cost of treatments per year
What is one of the benefits offered under standard plan
Widerchoice of hospitals, outpatient costs covered
What are the extra benefits on a comprehensive PMI plan
Fullest cover
Longer claim periods
Cover cost of a parent staying with a child
What is a moratorium
medical conditions that an individual has had in the previous five years before the start of the policy are excluded for a period of e.g. two years.
How does a claim for PMI begin
Referral from GP
How are PMI payments taxed
Tax free
What is mortgage PPI
Protection against not being able to pay mortgage due to sickness, accident or illness, involuntarily unemployment
How long are mppi benefits usually payable for
12,18 or 24 months
How long is the deferred payment in mppi
30 or 60 days
Are mppi benefits taxed
No
What are mppi policies sometimes called
short-term income protection
Can mppi be sold same times as mortgage
no
How could a self employed person claim on mppi
If business goes into liquidation
What are the usual 4 eligibility criteria for mppi
Mortgages of main residence
Permenant residents in U.K.
Under 65
Employed
How is ASu benefit paid
monthly or weekly benefit payable if the insured is unable to work due to accident, sickness or unemployment;
What is the max length of time ASU benefit will be paid
2 years
How is group ASU limited
To incidents at work
IS asu taxed?
NO
How do health Cash plans work
These are simple and relatively low-cost healthcare plans that pay up to 100% of the cost of treatment up to a preset annual limit or towards specified treatments, including optical and dental services
How long is the waiting period for health cash plans normally
six months
Why is health cash plans more common now than PMI
cheaper alternative for some cover
How is PPI cover normals restricted
To minimum payment for 12 months
When can PPI now be sold in relation. To a loan
Only after 7 days of loan sale or at point where a personalised illustration is provided
