Types of insurance Flashcards
What is car insurance?
State two pros and cons.
A legal requirement which covers theft and accidents. It also protects driver, passenger and other road users.
+ Pay for repairs to own car and 3rd party.
+ Reduced premium for safe drivers.
- Premiums vary depending on level of risk (young drivers pay more).
- Excess must be paid before claim repayments are made.
What is home and contents insurance?
State two pros and cons.
Items are replaced if stolen and any damage repairs are paid for.
+ Covers items when outside the home.
+ Replacing items can be expensive, so an individual saves a lot of money as they don’t have to pay.
- Excesses often apply.
- Compulsory for some mortgages.
What is life assurance and insurance?
State a pro and con for each type.
Life INSURANCE is a large lump sum paid on event of death.
+ Aids in financial planning through different life stages.
- Easy to be misled if not informed properly (some policies are not index linked).
Life ASSURANCE are small regular monthly payments made in event of death.
+ Pays out regardless of when a person dies.
- Can be expensive due to the expected long duration of policy.
What is travel insurance?
State two pros and cons.
Medical expenses are paid for when abroad, holiday cancellation costs are covered and lost baggage is insured. (If a flight was to delay, they’d pay for the hotel fees).
+ Repatriation cost.
+ Millions of pounds of medical expenses can be covered.
- May need to meet replacement costs and then claim them back.
- long stay travel insurance lasts for 3-18 months, so for someone who doesn’t travel often wont benefit them.
What is pet insurance?
State two pros and cons.
Vet fees such as operations and annual health checks are covered for in the case of an emergency.
+ Operations for an animal can be expensive.
+ Gives families and pet owners a peace of mind.
- Excesses often apply.
- Exclusions may apply.
What is health insurance?
State two pros and cons.
Annual health checks, private consultations, accommodation and nursing care.
+ Patients can be seen quicker than in the NHS.
+ May include drugs or treatment which is not covered in the NHS.
- NHS provides comprehensive health care for all.
- Costly, can struggle to meet payments.
