Insurance

Question 1

Insurance

Answer 1

An agreement with a third party to provide compensation against financial loss in line with the conditions laid down in the policy agreement

Question 2

Car

Answer 2

It is a legal requirement to insure any car that is on the road as this covers theft and accidents

+ Meets legal requirements
+ Protects against damage caused to a third party

• Premiums can be high depending on assessed level of risk
• Cost varies depending on car’s specification and engine size

Question 3

Home + Contents

Answer 3

Home insurance covers the physical building and contents insurance covers the physical items while high value items may need to be specified

+ Protects against damage which may otherwise be too expensive to repair

• Premiums are an additional expense to home ownership

Question 4

Life Assurance + Insurance

Answer 4

Life assurance is an ongoing policy to pay a lump sum upon death and life insurance is a policy for a set period of time to pay a lump sum if you die within that time period

+ Provides peace of mind to family following bereavement of a homeowner

• If the policy holder does not die within the period of life insurance no payment is made

Question 5

Travel

Answer 5

Protects individuals or groups while abroad, cover generally includes loss or theft of property, illness, cancellation and emergencies up to pre-determined limits, specific activities e.g. skiing will require additional cover

+ Provides protection for personal belongings when away from home
+ Protects against cancellation and delays

• An additional cost when travelling abroad

Question 6

Pet

Answer 6

This protects the owners of pets against some or all of the expenses associated with treating ill or injured pets i.e. vets’ fees

+ Avoids expensive vet fees

• An additional expense to protect against the unexpected

Question 7

Health

Answer 7

This covers individuals, families or employees against medical expenses including assessments, treatments and loss of earnings

+ Can reduce financial burden and stress allowing the patient to concentrate on recovery
+ If used to fund private care, this often results in quicker treatment and better facilities

• Premiums can be expensive depending on the degree of cover required

Question 8

Premiums

Answer 8

Regular payments made by an individual or company to an insurance provider in return for protection

Question 9

Third Party Car Insurance

Answer 9

• Minimum legal level of cover in the UK
• Will compensate any passengers that suffer injuries whilst travelling in your car
• Will never pay for damage to your own car
• Will not pay if the car is stolen or damaged by fire
• Cheaper way to build up no claims discount

Question 10

Third Party, Fire & Theft Car Insurance

Answer 10

• Covers damage to own car as a result of fire or theft
• Covers for third party damage if you have an accident
• Will not pay out for any damage to your car in the event of an accident
• Cheaper way to build up no claims discount

Question 11

Comprehensive Car Insurance

Answer 11

• Covers damage to the car as a result of accident, fire or theft and cover for windscreen damagei
• Covers third party damage if you have an accident
• Cover includes: medical expenses, personal affects, in-car entertainment
• Often includes courtesy car