Types Of Financial Protection 1 Flashcards
What is life assurance?
What types are there?
Life assurance pays out a lump sum on death, can be used to clear mortgage or debt, protect investments or pay Inheritance tax.
Term assurance - specified time such as period of a mortgage.
Level term - pays out a fixed amount
Decreasing term - pays out decreasing amount as years pass (to follow mortgage liability)
Convertible term - includes an option to convert the policy to whole-of-life or endowment without the need for further medicals
Whole of life - cover ls whole of life but is based on investments and the sum paid out will depend on investments
Which UK state benefit is replacing various others?
Universal credit
Housing benefit is means tested. True or false?
True
SMI is paid as:
A) benefit
B) loan
C) gift
B) loan
Mortgage protection insurance is the most common use of which type of term assurance)
A) level term assurance
B) decreasing term assurance
C) convertible term assurance
B) decreasing term assurance
When exercising the convert option on convertible term assurance, the new sum assured:
A) can not exceed the original sum
B) must be equal to the original sum assured
C) can exceed the original sum assured
A) can not exceed the original sum
Which core conditions are generally always covered by a CIC policy? select all that apply:
A) all forms of cancer
B) heart attack of any severity
C) stroke resulting in permanent symptoms
D) heart attack of specified severity
E) most forms of cancer
C) stroke resulting in permanent symptoms
D) heart attack of specified severity
E) most forms of cancer
When deciding whether to change a reviewable CIC or IPI premium, the insurer cannot consider claims experience. True or false?
False
For which of the following traditional exclusions did the ABI revise its CIC guidance in 2018?
A) self inflicted injuries
B) participation in certain high-risk past times
C) HIV not resulting from a blood transfusion, an assault or a work accident
C) HIV not resulting from a blood transfusion, an assault or a work accident
IPI benefits cease on the earliest of recovery and end of policy term, death or what else?
Retirement
A payout from a CIC plan can only be triggered if the insured takes a specified minimum amount of time off work. True or false?
False
