Insurance Flashcards
What is a premium?
The price paid to an insurance firm monthly/annually in return for an insurance policy.
What is an insurance policy?
Written details of your insurance cover & its terms + conditions.
What is a broker?
A person or business who sells insurance on behalf of different insurance companies and is paid a commission by the insurance company.
Example: Chill Insurance.
What are the types of life assurance?
• Whole life
• Term life
• Endowment
What is whole life assurance?
A person pays a premium for the duration of their life, and when they die, the insurance firm pays out to the named person. Often used to help funeral expenses.
Example: Family member.
What is term life assurance?
A policy taken out for a certain length of time, which only pays out if the person dies within that timeframe. If the person lives past it, there is no payout.
Example: Mortgage protection.
What is an endowment policy?
Combines whole life assurance with a saving element. Part of the payment goes to whole life assurance and part to a savings plan. On death, a lump sum is paid out, and at a certain age, the policy can be cashed in at a reduced value.
Most expensive type of life assurance.
What are the types of health insurance?
• Income protection insurance
• Critical illness insurance
• Private health insurance
What is income protection insurance?
Insurance that provides an income to the policyholder if they cannot work due to illness or injury, covering 75% of usual earnings until they return to work or reach age 66.
What is critical illness insurance?
Pays out if the policyholder is diagnosed with a specific illness/disability named in the policy, allowing the lump sum to cover medical expenses or supplement income loss.
What is private health insurance?
Helps cover medical expenses if a person is sick, has an accident, or needs an operation, allowing quicker access to medical treatments and a variety of hospitals, consultants, and rooms.
Example: VHI & LAYA healthcare.
