Chapter 4 Other healthcare insurance products

Question 1

Which policy pays a lump sum benefit in the event of the insured requiring specified surgery.

The benefit can then be used to fund the insurance

Can also cover some non surgical treatments eg removal of wisdom teeth

Answer 1

Hospital treatment insurance also called
Major medex
Surgical cash
Surgery cover
Budget PMI

Question 2

What will a hospital treatment insurance policy pay?

Answer 2

A lump sum benefit in the event of the insured requiring specified surgery.

Question 3

What policy pays a lump sum on diagnosis of cancer?

Answer 3

Cancer only cover

Question 4

What does Cancer only cover pay?

Answer 4

Pay fixed lump sum on diagnosis of cancer rather than cost of treatment

Question 5

Why has critical illness cover replaced cancer only cover

Answer 5

70% of critical illness insurance claims s are cancer claims

Question 6

What elements of health insurance are covered under a Travel policy?

Answer 6

Emergency medical and surgicaltreatment up to limit eg 2m
Emergency dental treatment eg£250 limit
Cost of evacuation or repatriationeg by air ambulance

Question 7

What his the rate of IPT on travel policies

Answer 7

20%

Question 8

What does a Personal Accident policy pay?

Answer 8

Lump sum if insured is injured in accident
Full benefit payable for death and permanent disability
Weekly sum for temporary disability
Schedule of benefits for other injuries

Question 9

For how long will a Personal Accident policy pay for temporary disability

Answer 9

12-24 months

Question 10

What does an ASU insurance policy pay?

Answer 10

Accident A benefit if you are injured in an accident
Sickness A weekly benefit is the insured is sick and can not work
Unemployment A weekly benefit if you are made redundant

Question 11

What policy pays a benefit linked to a monthly loan repayment in the event a person loses their source of income due to accident, sickness or redundancy

Answer 11

Payment protection insurance also called mortgage payment protection insurance and creditor insurance

Question 12

What policy will pay a preselected monthly income to meet the cost of home care or nursing home fees

Answer 12

Long Term Care insurance

Question 13

How does a pre funded LTC policy work

Answer 13

Insured pays premium when in good health and policy pays benefit is care required

Question 14

How does an immediate needs LTC policy work?

Answer 14

Insured pays capital sum to insurer when need arises then insurer pays an annuity to cover costs

Question 15

What policy pays replacement monthly income ifperson unable to work after a pre-setdeferred period due to accident or sickness

Answer 15

Income protection insurance also known as Long Term Disability Insurance or Permanent Health Insurance

Question 16

What insurance policy’s premiums are not subject to IPT?

Answer 16

Income protection insurance

Question 17

What policy pays out pre-determined lump sum on the occurrence of a specified range of illnesses as set at outset

Answer 17

Critical illness insurance

Question 18

Which total permanent disability definition provides the broadest protection

Answer 18

Unable to do your own occupation ever again

Question 19

What is a waiver of premium benefit

Answer 19

Insurance premium waived if customers unable to work because of illness or cpacity

Question 20

Identify five added value benefits provided by health insurers

Answer 20

Telephone helplines
Online medical information
Online GP
Counselling
Rehabilitation

Question 21

Why do health insurers add additional services?

Answer 21

Some services are hard to find
Services add to perceived value of product
Differentiate from competitors
Customers who don’t claim still benefit encouraging loyalty

Question 22

What additional benefits are added to Group PMI schemes

Answer 22

Employee assistance and counselling
Occupational health audits to reduce absence
Wellness advice

Question 23

Identify two types of treatment advice helplines

Answer 23

Passive - pre-recorded

Active advice on action to take best hospital etc.

Question 24

Is health screening covered under PMI?

Answer 24

Not usually although some insurers offer premium discount screening undertaken?

Question 25

Identify four factors which an individual will consider when choosing the right cover?

Answer 25

1. Their priorities
2. The greatest risk to their livelihood
3. Their health
4. What they can afford

Question 26

Identify four factors an individual should consider when choosing the most suitable policy

Answer 26

1. What is available
2. What benefits are most important?
3. What level of benefits they want/can afford
4. The best range of benefits and overall value

Question 27

How should an IFA or an individual assess their own needs ?

Answer 27

Through a fact find on hard facts such as age and soft facts scubas personal priorities
Choose product which best meets those needs but regularly review needs