A4- Insurance Flashcards
CAR INSURANCE
What does it cover & why have it?
Damage or theft. Damage to a 3rd party. Hire car.
Why?
It is a legal requirement to insure any car that is on the road- this covers theft aswll as accidents.
It protects driver, passengers and other road users.
TRAVEL INSURANCE
What does it cover & why have it?
Medical expenses paid when abroad. Holiday cancellation costs. Lost baggage.
Why?
Protects individuals while abroad. Policies can be purchased for each trip/ all trips in a year. Specific types of holidays or activities (e.g. extreme sports) will require additional cover due to the high risks.
HOME AND CONTENTS INSURANCE
What does it cover & why have it?
New for old. Items replaced if stolen. Repairs paid for if caused by accidents e.g. storms, flooding or fire
Why?
Covers everything in the house, but if it’s something very expensive might need to be specified in the policy, like a diamond ring.
Items can be insured when used outside the house aswll as inside.
LIFE INSURANCE & ASSURANCE
What does it cover & why have it?
Insurance: large lump sum paid in the event of death.
Assurance: small regular monthly payments made in the event of death.
Why?
Life insurance is a policy for a set period of time to pay a lump sum if you die within that time of period. Mortgage lenders often insist upon life insurance for the same period as the mortgage to secure a repayment of the mortgage if the holder dials why monies are still owed.
HEALTH INSURANCE
Annual health check. Private consultations. Accommodation and nursing care.
This covers individuals families or employees against medical expenses including assessment treatment and loss of earnings. In the UK the NHS provides free medical care but with individuals may wish to take out insurance to receive payments if for example time is spent in hospital or to receive private treatment. Health insurance can include payment plans to cover routine visit such as to the dentist or optician.
PET INSURANCE
Vets fees. Operations. Annual health check.
