9 Other insurance based policies Flashcards
Typically, how long of a contract is a Personal accident and sickness insurance policy?
1 year
On what bases can PAS be set up on a group scheme?
COntributory & non-contributory
When would a PAS policy be subject to income tax for a group scheme?
if it’s non-contributory and the employer pays the premiums then it’s subject to income tax under PAYE
Who are PAS policies particularly suitable for?
The self employed
What is an indemnity policy with respect to PMI?
means that insured person can only claim back the costs that have been incurred
What types of conditions will PMI cover and which won’t it cover?
Will cover acute conditions, won’t cover chronic conditions
What do insurance companies need to do with regards to PMI cancer claims?
Need to provide examples on their approach to cancer claims
Why would PMI providers limit cancer claims or exclude it entirely?
As it can start as an acute condition but it can develop in to a chronic one
Name 2 arguments for taking out PMI
- Long NHS waiting lists
- Better quality of service
- Lower infection risks staying in private individual ward
What 3 types of cover can PMI be sold as?
Basic, standard & comprehensive
What is co-payment for PMI policies?
where the insured has to pay part of treatment
When PMI policies are written covering dependants, who would this apply to?
children are those below 21 living at home and up to 25 when in full time education
What does it mean if a contract is written on a moratorium basis?
can exclude medical conditions someone has had in last 5 years, e.g can exclude them for next 2 years
Who is mortgage payment protection insurance most suitable for?
To help people pay their mortgage if they become too sick to work or have an accident
Which type of protection is similarly structured to MPPI?
ASU
For how long does short term income protection usually last for?
2-5 years
When can MPPI be sold with a loan?
later of 7 days post sale or when a personalised illustration is provided
Will an MPPI policy pay out if the policyholder was aware of potential reduncdancies when they took it out?
No
When would ASU pay out a lump sum?
if someone loses a limb/ sight
Are ASU benefits paid taxable?
No
What is a health cash plan?
Health cash plans pay up 100% of cost of treatment up to an annual limit
For how long would someone typically have to wait to make a claim under a health cash plan?
6 months
What would a dental capitation plan typically cover?
usual check-ups, treatment needed and dental emergencies
Why would insurers require someone to undergo a medical examination before taking out a dental capitation scheme?
to understand what work might need to be done
