Chapter 9- Other Insurance Based Products Flashcards
How long does a personal accident a sickness policy usually last
Annual or shorter eg 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 a cider and sickness insurance
Nope
Who is personal accident and sickness cover aimed at
People needing to cover for one off events which aren’t covered by other policies
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
What are the limitations on basic PMI
No extra benefits
Cover often limited
Often the insured must cover the first part of costs
What is one of the benefits offered under standard plan
Wider choice of hospitals
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 present within a number of years or the start of covere will be excluded for first few years of the policy but removes need for full medical uw
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 accident or illness
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
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 if unab,e to work due to accident sickness or unemployment
What is the max length of time ASU benefit will be laid
2 years
How is group ASU limited
To incidents at work
How do health ash plans work
Pay up to 100% of cost of treatment up to annual limit
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
What are the 12 factors shaping a clients needs
Age Marital status Dependents Wills Health Occupation Hobbies Income Expenditure Liabilities Benefits Existing policies
What are the 5 steps in the life assurance planning process
Identify general need
Quantify amount of capital and income needed
Determine how long cover for each need is required
Take into account existing policies
Recommend appropriate types of policy
