Insurance

Question 1

Home and contents insurance

Answer 1

+ home insurance covers the cost of rebuidling and repairs

+ contents insurance covers loss or damge to personal possessions

• only covers the cost of rebuilding the property, not market value
• cant cover sentimental value of personal possessions

Question 2

Car insurance

Answer 2

+ can build up a no claims bonus

+ provides protection agasint liabilty claims from other drivers

• expensive for new and young drivers
• policy excess can add to costs in the event of a claim

Question 3

Health insurance

Answer 3

+ covers some or all private medical costs

+ can choose type of illnesses/ treatments to cover for

• medical conditions that arise during the initial period of the policy may not be covered
• pre - exisiting medical conditions are not covered

Question 4

Pet insurance

Answer 4

+ cover for personal injury or damage

+ covers vet fees if you lose your pet

• vacvines arent covered
• some policies will limit the amount of medical expenses covered

Question 5

Life insurance and assurance

Answer 5

+ pays out a lump sum of money in the event of a death

+ life assurance is a mixture of life insurance and investment

• pre existing medical conditions may not be covered
• life assurance pay outs linked with performance of investments

Question 6

Travel insurance

Answer 6

+ provides covers for delaysband cancellation of the trip

+ provides cover for loss of personal possession on the holiday

• pay outs may not cover the full amount of the financial loss
• can add to expenses of holiday