Section A types of insurance

Question 1

2 advs of car insurance

Answer 1

Ensures legal requirements are satisfied

protects against theft or damage

Question 2

2 dis advs of car insuracne

Answer 2

premiums can be high depending on assessed level of risk of driver

most policies an excess must be paid which can be very high

Question 3

2 advs of home insurance

Answer 3

protects against damage that may otherwise be too expensive to repair resulting in loss of home

contents are protected both in / out of home

Question 4

2 dis advs of home insurance

Answer 4

premiums are an additional expense on top of house owner ship

some items cannot be replaced due to sentimental value like photographs

Question 5

2 advs of life insuracne

Answer 5

peace of mind to familiy following bereavement of a homeowner

cost of cover is relative low as life expectancy has risen

Question 6

2 dis advs of life insurance

Answer 6

if life assured survivies the term then there will be no pay out

cover taken on a whole lifes basis ‘assurance’ is much more expensive

Question 7

2 advs of travel insurance

Answer 7

provides protection to personal belongings when away from home

covers medical costs when on holiday

Question 8

2 dis advs of travel insurance

Answer 8

additional cost when travelling abroad which may not even be utilsised

the person suffering loss will have to pay costs up front and claim later

Question 9

2 advs of pet insurance

Answer 9

avoids vet fees

avoids difficult pet treatment decisions based on affordability

Question 10

2 dis advs of pet insurance

Answer 10

additional expense to protect against the unexpected

may never recover the true value of policy if the pet is well

Question 11

2 advs of health insurance

Answer 11

used for private healthcare = quicker access to better treatment than NHS

some compensation is provided when ill - reduces financial burden and stress during period of illness

Question 12

2 dis advs of health insuracne

Answer 12

premiums can be expensive depending on level of cover required

further expense on something that preferably will not be used