Chp 2 Financial Protection Needs

Question 1

Life Assurance

Answer 1

Providing lump sum on death of assurred

Question 2

Income protection

Answer 2

Providing regular income when unable to work

Question 3

Critical illness cover

Answer 3

Providing lump sum is suffering from listed critical illness

Question 4

Long term care insurance

Answer 4

Cover to pay for long term care in old age or infirmity

Question 5

Payment protection insurance

Answer 5

Regular income to cover loans if unable to work (not mortgage)

Question 6

Personal accident & sickness

Answer 6

Lump sum or income if insured suffers accident of falls ill

Question 7

Accident, sickness & unemployment

Answer 7

Lump sum or income if suffer accident, unable to work due to redundancy or unemployment

Question 8

Private Medical

Answer 8

Cover private medical costs

Question 9

Health cash plan

Answer 9

small lump sum for number of medical treatments or hospital stay

Question 10

Name protection that will mitigate - Health, incapacity or illness?

Answer 10

Income protection (sick pay, self employed, dependents, state benefits)
Accident Sickness & unemployment
Critical Illness Cover
Long term care
Private Medical Insurance

Question 11

Why might protection be needed for death?

Answer 11

Cover income loss for dependents - children, spouse
Pay off a mortgage
Elderly relative
Disabled children for longer then adulthood

Question 12

Two other areas of protection?

Answer 12

Business & Asset (IHT)

Question 13

What can happen on divorce?

Answer 13

Protection policies can be split

Cover will continue unless cancelled or ordered by the court

Question 14

What employee benefits can you get?

Answer 14

Sick Pay, Death in service, CIC, pension arrangements, PMI - bulk buy can lower costs & underwriting requirements