Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

F102 Life > Health & Care Products (5 – 7) > Flashcards

Health & Care Products (5 – 7) Flashcards

1
Q

Income Protection Types

A

Disability income / LT sickness / permanent health insurance

Guaranteed & reviewable

GIO

No claims discounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

IP Benefits

A

Pre-determined
– income
– lump-sum
… whilst incapacitated for work (illness/disability)

NB
- replacement ratio
- pay to recovery / death / term
- only until retirement age (min 5 yrs)

Level/increasing/index-linked

Reviewable: increase by life even

Surrender: NO

Group: Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

IP Needs

A

Needs:
- income replacement
- service loans

  • Optional/auto rider on assurance premium waiver
  • Locum protection

• Waiting period (at commencement)
• Deferred period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

IP Risks

A

Main
- morbidity (claim inception & claim termination rates)
- data
- anti-selection
- moral hazard

lesser
- mortality
- expense
- investment
- withdrawal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

IP Capital

A

Depending on pricing vs reserving bases
- esp. sickness assumptions

Depends on
- design
- payment frequency
- initial expenses
- solvency capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Deferred Period

A

Period of incapacity before any payment is made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Waiting Period

A

Benefits not paid during specific period after policy initiation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Linked Claims Period

A

Off-benefit period

Waive deferred period when sickness recurs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IP Claim Definitions

A

Occupational
– own
– alternative
– any

Alternative
– ADL
– FAT
– ADW
– PCA

Functional assessment tests
Personal capability assessment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Over Insurance mitigation techniques (5)

A

– financial u/w
– periodic checks
– sales staff training
– policy conditions
– benefit limits
> max overall
> replacement ratio
> limit high salaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Critical Illness Types & Forms

A

AKA
- dread disease
- serious illness
- crisis cash
- living assurance

Terminal illness
Children’s benefit
Tiered benefits
Guaranteed & reviewable
Total & permanent disability

Most without-profits
Also
- With-profits
- Unit-linked MAX[ unit value; guaranteed min benefit ]

  • stand-alone
  • rider
  • accelerator
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

CI Benefits

A

Lump sum (typical) / impaired life annuity.
Payable on CI event
– defined degree of impairment
– undergo surgical procedure

Surrender: No

Group: Yes

SA CORE
- heart attack
- cancer
- stroke
- CABG

Coronary Artery By-pass Graft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

CI needs based on (3)

&

Needs (7)

A

Based on:
- perceived seriousness
- conditions clearly definable
- sufficient data

Meet:
- income while cannot work
- repay loan
- medical costs
- partnership buyout
- change lifestyle
- recouperation
- specialist equipment

**NOT Indemnity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

CI Risks

A

Rate of diagnosis
- morbidity
- limited info

  • signif. anti-selection
  • selective withdraw

Stand-alone
- expense
- minimal investment risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

CI Capital

A

Stand-alone / marginal rider: same as IP
- expense & commission of same order
- supervisory similar

reserve for late notified
(notification period)

Guarantees cause
- increase capital need
- with medical advances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

CI Total & Permanent Disability

A

3 disability types
- occupation based
- ADLS
- Working activities

Compliments CI
- CI is temporary disability

17
Q

Survival Period

A

Period after disability / illness to survive before benefit is paid

18
Q

Moratorium

A

Do not cover conditions that existed during pre-specified period.

Will cover after a few years if no treatment/symptoms/advice takes place

19
Q

Notifications Period

A

Period need to notify insurer from when condition / claim incident occurs

20
Q

Long-Term Care Insurance

A

Continuing personal / nursing care

Surrender: No but paid up

Min premium payment period, paid-up:
- reduce benefits (main/death)
- increase deferred period
- reduce benefit escalation
- reduce benefit payment period

Group: NO

21
Q

LTCI Forms

A

Traditionally w/o profits

Pre-funded
Unit-linked (refunded)
Immediate needs
Pension

22
Q

LTCI Benefits

A

Benefit can be
- lump sum/annuity
- indemnity based
- advice

single / multiple event trigger
- ADL & cognitive impairment

Variations:
- guaranteed vs reviewable
- cash vs indemnity (expensive)

23
Q

LTCI Needs

A

Financial protection against need for LT care in future:
- no informal
- no/insufficient State benefits

Structure stand-alone / integrated:
> added to CI – TPD with loss of independent existence criteria
> rider on whole (large S)
> added to IP: cover beyond retirement age (bad combo)

24
Q

LTCI Risks

A

Main risk is transfer probabilities. Claim:
- inception prob
- claim states

  • signif. anti-selection
  • selective withdraw
  • moral hazard

** Investment risk
significant reserves

Expense risk (LT)

  • Neg asset share risk
  • Marketing
  • reputational
25
Q

LTCI Capital

A

Comparable to endowment

Dependent on guarantees

Significant
- LT & uncertainty
- high initial cost
- large margins

Never as high as whole life

26
Q

LTCI Unit-linked

A

Guarantees:
- none
- protection from fixed age
- full guarantee (managed / with-profits

Savings & protection
- death/surrender benefit
- LT care
- wealth transfer

27
Q

LTCI Immediate Needs

A

Shorter duration: need care now
Single premium

Aids with:
- uncertain survival duration
- certainty of capital cost
- guarantee lifetime income

Impaired life annuity: w/o profits & non-link
- unit exist (wealth transfer)

  • expense risk is lower
  • less investment Risk

Lower risk than pre-funded

28
Q

LTCI Pension

A
  • As rider: increase pension income
  • deferred impaired life annuity

Natural link: pensions & LTCI:
- post-retirement needs
- paid by lump-sum/pension income

29
Q

H&C: Business mix and volume & persistency influenced by

A

– economic morale

– government provision

– tax

30
Q

Difficult to predict IP business volume (4)

A

– depend on economic & political factors

– under-insured

– competition is great & reluctant public

– mis-handling of claims

31
Q

IP shouldn’t cover (6)

A
  1. Unemployment
  2. Redundancy
  3. Early retirement
  4. Reluctance to work again
  5. HIV
  6. Attempted suicide
32
Q

CI disability definitions

A
  1. Occupation based
  2. ADLs
  3. Working activities / functional abilities
33
Q

Overinsurance causes

A

– from outset
– salary increases < benefit increases
– lower tax
– multiple policies
– undisclosed income

34
Q

LT Care costs

A
  1. Housing / Accommodation / Hotel
  2. Living
  3. Personal Care

F102 Life (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions