Insurance types Flashcards
Car
It is a legal requirement to insure any car on the road this covers theft as well as accident. The degree of cover will vary depending upon whether the policy is third party or fully comprehensive.
Car pro’s and con’s
Pro’s - meets legal requirements, protects against theft or damage, protects against damage caused to a third party.
Con’s - premiums can be high depending upon assessed level of risk e.g. expensive for young drivers, normally there is a excess that must be paid.
Home
Building insurance covers the physical building itself and in case of fire or structure damage.
Contents insurance coves items within the house. There is also the option to cover items when they are not at home.
Home pro’s and con’s
Pro’s - protects against damage which may be to expensive to repair resulting loss of a home, contents are protected in and out the home.
Con’s - premiums are a additional expense to home ownerships, some items cant be replaced due to a value beyond financial worth
Life
a policy that pays a lump sum upon death, life insurance is usually required when purchasing a home to ensure the mortgage is covered if homeowner dies.
Life pro’s and con’s
Pro’s - provides peace of mind to family following the bereavement of homeowner.
Con’s - if policy holder does not die within period of life insurance no payment is made
Travel
Protect you while abroad. Typically covers illness, holiday and flight cancellation, theft and emergencies
Travel pro’s and con’s
Pro’s - provides protection for personal belongings, covers medial costs on holiday, protects against cancellation and sometimes delays.
Con’s - person suffering the loss is likely to have to pay upfront to replace items or cover medical costs and then reclaim later, its an additional cost when travelling abroad.
Pet
Protects the owners of pets from expenses associated with looking after a pet such as illness or injury of the animals
Pet pro’s and con’s
Pro’s - avoids expensive vet fees, if vet fees are too high there may be no alternative to having the best put down but insurance can avoid this.
Con’s - an additional monthly expense to protect against the unexpected.
Health
covers individuals, families, and employees via a payment plan that may include going to dentist or opticians.
Health pro’s and con’s
Pro’s - if used to fund private care this often results in quicker treatment and better facilities, compensation allows patient to concentrate on recovery rather than financial issues.
Con’s - paying for something you hope you will not use, premiums can be expensive depending upon cover required, will not cover pre-known conditions.
