Protection Flashcards
Considerations for taking/relying on employer benefits/protection policies?
Disire to use benefit
Willingness to self fund and use other assets?
Continuation on retirment?
Does it meet need?
What is plan?
Competitive premiums?
Affordability in retirement?
Benefits of PMI
Quicker traleatment
Choice of hospital/treatment/consultant
Choice of plan
Lump sum for overnight in NHS hospital
Lower premiums if in good health
Tax-free benefit
If employee benefit
Age is not an issue if unable to get elsewhere
Pre-existing conditions may be covered if renewed with same provider
PASTE TWIG
Product
Assured person
Sum assured
Term
Extras:
Travel and trust
Waiver
Indexation
Gurantee
Discribe basic PMI
Low cost
No extra benefits
Limits on costs of treatment
Covers accommodation, drugs, and doctors’ fees
Paying/employer paying excess lowers premium
No outpatient, home nursing, or private ambulance
Potential discounts for healthy lifestyle/discount gym memeberships
Suitable for those on small budget or willing to pay a proportion of costs
Discribe standard PMI
Covers more items than basic
Longer claim periods
Higher limits
Wider choice of hospitals
May include outpatient and psychiatric care
Consultant fees, diagnostics tests, and physiotherapy included up to a limit
Suit those with a larger budget
Wanting wider cover than basic plan
Discribe comprehensive PMI
Most expensive cover
Longer claim periods
Higher limits
Wider choice of hospitals
Home nursing
Private ambulances
Parent staying with child
Alternative medicine
Dental
Overseas travel
Cash payment for overnight in NHS
Considerations for Longterm-care strategy
Budget and income
-How much can they put towards this
Additional and assets
-Large assets will mean self funder
-Downsize/equity release
-willingness to use other assets to fund care
Need
-Type of care required
Timescale
-Life expectancy
Tax and efficiency
Expenditure
-Estimated care cost
-Care cost inflation
Risk and investment
-use of deffered annuity
Regulation and state provision
-eligibilty for state provision
What are the pros of death in service benefit
Before you die in service ACT on theses PROs as it will rise with your pay
Additional financial security
Cost effective
Tax free payout
Put in trust
Rises with pay increases
nO medical underwriting
What are the cons of death in service
You should worry about these liabilities, the CLOSER you get to death
Control is out of the clients hands
Lost on new employment
Only death no CIC or IPI
Salary sacrifice may lower cover
Employer could withdraw the cover
Reduction in hours could lower cover
