Unit 1, Topic 12 Flashcards
Julie wants to make sure that she can meet all of her essential outgoings if she is unable to work due to medium or long-term illness. Which of the following products would be most suitable for her?
A) Accident, sickness and unemployment insurance
B) Critical illness cover
C) Income protection insurance
D) Private medical insurance
C) Income protection insurance
When Gary was diagnosed with bowel cancer at the age of 50, he was able to use the lump sum he received under his insurance policy to pay off his outstanding mortgage. Which of the following types of insurance did Gary have?
A) Private medical insurance
B) Income protection insurance
C) Critical illness insurance
D) Long-term care insurance
C) Critical illness insurance
Marco’s partner Lydia, a HR manager, already has income protection insurance. If she claims under her policy, she will have to pay tax and NICs on the income she receives. If Marco goes ahead and buys income protection, he will not pay tax or NICs if he has to claim benefits under the policy. This is likely to be because:
A) Marco’s earnings are below the personal allowance for income tax
B) Marco’s policy will be arranged on an individual basis whereas Lydia’s policy has been arranged as part of a group scheme
C) Marco is self-employed whereas Lydia is an employee
D) The insurance provider from whom Marco is thinking of buying his policy has different rules to Lydia’s insurance provider
B) Marco’s policy will be arranged on an individual basis whereas Lydia’s policy has been arranged as part of a group scheme
Adaeze, an office administrator, hurts one of her hands, causing permanent damage, and has to be re-employed on a lower salary. What effect would her return to work have on her IPI benefits?
A) Full benefits would be paid until Adaeze has fully recovered
B) Proportionate benefits would be paid, but no other claims under the policy would be accepted by the insurance company
C) Benefits would cease immediately
D) Proportionate benefits would be paid until retirement, death or the end of the policy
D) Proportionate benefits would be paid until retirement, death or the end of the policy
Annette, who retired last year, has developed arthritis and needs a hip replacement. Under which of the following types of insurance policy might she be eligible to claim benefits?
A) Critical illness cover
B) Accident, sickness and unemployment insurance
C) Private medical insurance
D) Income protection insurance
C) Private medical insurance
Marco, a self-employed painter and decorator, is considering taking out income protection insurance. He should opt for as short a deferred period as possible. True or False
True
Vanessa is unhappy in her current job and has decided to resign. She will be able to claim benefits under her ASU policy to tide her over until she finds a new job. True or False
False
Roger, who is 78, is finding it difficult to look after himself at home and is planning to move into residential care next month. He has purchased an immediate needs annuity so his fees will be paid directly to his care provider, once tax has been deducted. True or False
False
General insurance policies operate on the principle that policyholders should be restored to the position they were in before the event occurred that led to their claim. True or False
True
It is illegal to drive a vehicle on public roads in the UK unless you have insurance that covers damage to your car or injury to yourself. True or False
False
