A4 Managing Personal Finance - Different types of insurance products Flashcards
what is insurance ?
insurance is a form of protection.
what do insurance policies cover ?
They cover the cost of loss , damage or illness up to prearranged levels in return for regular payements called premiums.
what are the 6 types of insurance ?
Car
Home and contents.
Life assurance and insurance.
Travel
pets
Health
what is the full definition of insurance ?
It is the premium paid will vary depending upon the amount of cover provided and the amount of risk assessed by the insurance provider.
facts about car insurance ?
- It is a legal requirement to insure any car that is on the road.
- It protects the driver , passengers and other road users.
what are the 3 main policies of car insurance ?
- Third party.
- Third party , fire and theft.
- Fully comprehensive.
facts about third party car insurance ?
- minimum level of cover required by law.
- this provides basic cover.
- It pays for damage to 3rd parties.
- It doesn’t cover the cost repair to your vehicle.
- it’s doesn’t cover you if your vehicle was stolen or damaged by fire either.
important facts about third party , fire and theft car insurance ?
- offers the level of cover in thirds party policies.
- it also protects the car against theft and fire.
- but it does not cover the cost of repairs to your vehicle
important facts about fully comprehensive car insurance
- covers damage to the car as a result of accident , fire , theft and covers for damage of the windscreen.
- it covers third parties.
- it also covers other items such as personal accident or injury , personal effects , in - car entertainment.
- it may include a courtesy car.
- but it will be expensive - have higher premiums.
what factors might influence the choice of car insurance ?
- The age of the car.
- The value of the car.
- Cost of the Premiums.
- excess
- No claims discount.
important facts about Home and contents insurance.
- Home insurance covers the physical building for example against fire.
- content insurance covers physical items in the house including electrical equipment , furniture and personal items
- Items can be insured when a person is using them away from home as well as when inside the house.
Important facts about life assurance and insurance.
- Life assurance is an ongoing policy to a pay a lump sum upon death.
- Life insurance is a policy for a set period of time to pay a lump sum if you die within that time period.
- Mortgage lenders often insist upon life insurance for the same period as the mortgage to secure payement of the mortgage if the holder dies whiles moneys are owed.
Important facts about Travel insurance
- This protects individuals or groups while abroad, Policies can be purchased to cover a specific trip, multiple trips or all trips within a year.
- cover will generally include loss or theft or property , illness , cancellation and emergencies up t0 redetermined limits.
- specific types of holidays or activities , for example skiing or extreme sports will require additional cover due to high level of risk associated.
1 fact about pet insurance
Pet insurance protects the owner of pets against some or all expenses associated with treating ill or injured pets , including vet fees.
facts about health insurance
Health insurance covers individuals, families or employees against medical expenses including assessments , treatments and loss of earnings.
Health insurance can include payement plan to cover routine visits such as to the dentist or optician with a percentage of expenses paid.
