Types Of Insurance

Question 1

Advantages of motor (car) insurance

Answer 1

Can build up a no claims bonus, may allow your insurance provider to offer discounts on your premiums
Provides protection against liability claims from other drivers

Question 2

Disadvantages of motor insurance

Answer 2

Insurance is expensive for new or young drivers
Policy excesses can be high (especially for new or younger drivers)

Question 3

Advantages of home and contents insurance

Answer 3

Home insurance covers the cost of rebuilding or repairs as a result of fire, flooding, etc
Contents insurance covers loss or damage to personal possessions

Question 4

Disadvantages of home and contents insurance

Answer 4

Only covers the cost of rebuilding the property, not the market value.
Unique items can’t be replaced

Question 5

Advantages of life insurance

Answer 5

-Large sum paid in the event of a death
-Cheaper than life assurance

Question 6

Disadvantages of life insurance

Answer 6

Not a guaranteed payout as the insured person may live past the certain period
Individuals with health conditions may have higher premiums (con of assurance too)

Question 7

Advantages of life assurance

Answer 7

Guaranteed payout
Offers peace of mind, as long as premiums are maintained

Question 8

Disadvantages of life assurance

Answer 8

Higher cost due to length of insurance
-Payouts are linked to the performance of investments which could lead to a decrease of payout to the policy holder if investments underperform.

Question 9

Advantages of travel insurance

Answer 9

Provides cover for delays, cancellation, loss of personal possessions whilst on the trip
Provides cover for emergency medical expenses

Question 10

Disadvantages of travel insurance

Answer 10

Pre-existing medical conditions aren’t usually covered
Payouts may not cover the full amount of the financial loss

Question 11

Advantages of pet insurance

Answer 11

Cover provided for personal injury or damage caused by the animal
-If animal has a serious illness, you can opt for lifetime cover, for an additional premium

Question 12

Disadvantages of pet insurance

Answer 12

Vaccinations aren’t covered
Pre-existing medical conditions aren’t covered

Question 13

Features of health insurance

Answer 13

Annual health check
Private consultations

Question 14

Advantages of health insurance

Answer 14

Covers some or all medical costs with convenient treatment times
Can choose types of illnesses and treatment you want to cover

Question 15

Disadvantages of health insurance

Answer 15

Pre-existing medical conditions aren’t covered
Medical conditions which arise during the initial period of the policy may not be covered.