Health care insurance Flashcards
What does health care insurance cover?
Loss of earnings from being sick
Why is health care insurance becoming more popular?
- People are living longer and surviving illness and as a result, will be out of work
- Social welfare is not enough to provide support to you when out of work
What type of payout does a critical illness policy have?
Lump-sum
When does a critical illness policy payout?
On diagnosis or a named condition or deterioration to a certain state as defined in the contract.
What is the goal of critical illness insurance?
To help an individual cope financially with the effects of a physical disability.
Why is critical illness insurance more expensive than life insurance?
Happens more often
What is excluded
Self-harm, alcohol and drug abuse
Why are certain things excluded from critical illness insurance
To reduce moral hazard
What is covered under perminant health insurance
You receive a monthly allowance if you are unable to work long term
Why do consumers buy permanent health insurance?
Because companies don’t provide enough cover
How long does permanent health insurance run for?
From inception to retirement
What are the only reasons an insurer can deny permanent health insurance?
Fraud or stop paying premiums
Explain premium increases for permanent health insurance?
Can increase premium because you had an accent, an insurer can only increase the premium of the entire pool
What prevents moral hazard in a permanent health policy
- Only 75% of income to encourage you to get back to work
- There is a deferred period before premiums are paid
- If you can go back to work, the payment stops.
What is the largest cause of permanent health insurance in Ireland?
Mental health
What factors affect the premium of Healthcare insurance? (4)
Age, health lifestyle
Occupation
Sum insured
Attitudes and behaviours in society (increased mental health awareness)
What are excluded from health care insurance? (5)
Pre-existing conditions (physical and mental) HIV/AIDS War/riot Pregnancy-related conditions Self-harm
Personal accident insurance
Provides benefits to the individual in the event of death or an accident
Types of cover for accident insurance (when it happens) (3/4)
In the course of employment
24 hours
Travel to and from work
Geographic limits: eg. Only in the EU
What is defined as an accident?
Violent, external and visible by means
What benefits do you get from a personal accident policy?
Lump sum
Long term care policy
Covers cost of nursing home care
.
