9 - Other insurance Based Policies

Question 1

Personal Accident and sickness insurance

How long does it last

Answer 1

Most contracts are annual but they can sometimes be taken out for shorter periods, e.g. for a business trip or a holiday.

Question 2

Name 6 common areas of cover for personal accident and sickness cover

Answer 2

Death
Permanent disablement
Loss of an eye
Loss of leg, foot or toe
Loss of arm, hand, finger
Other specified injuries

Question 3

What are the common benefits included in personal accident and sickness cover

Answer 3

Lump sum which varies based on severity
Refund medical costs
Weekly sickness benefit paid for 26/52/104 weeks if unable to work

Question 4

Is there any tax relief on Personal accident and sickness insurance?

Answer 4

No

Question 5

Who is personal accident and sickness cover aimed at

Answer 5

People needing to cover for one off events which aren’t covered by other policies

Question 6

Why is personal accident and sickness insurance different to IP

Answer 6

short-term policy, not as good in long run

Question 7

What does PMI do

Answer 7

Covers cost of private medical care

Question 8

What type of illness is PMI designed for

Answer 8

Acute rather than chronic

Question 9

What illness must firms provide examples of their approach to treatment for under ABI guidance

Answer 9

Cancer

Question 10

How many principles are there for PMI according to ABI

Answer 10

4
Common definitions must be used
Each customer should get all information
Terms and conditions should explain what treatment is and not covered by policy
Customer should be told about charges
How to claim
Customer should get consumer guide (ABI are you buying private medical insurance)

Question 11

What is basic plans of PMI

Answer 11

Basic coverage - accomodation, drugs and doctor fees not outpatient tretaments.. limits on cost of treatments per year

Question 12

What is one of the benefits offered under standard plan

Answer 12

Widerchoice of hospitals, outpatient costs covered

Question 13

What are the extra benefits on a comprehensive PMI plan

Answer 13

Fullest cover
Longer claim periods
Cover cost of a parent staying with a child

Question 14

What is a moratorium

Answer 14

medical conditions that an individual has had in the previous five years before the start of the policy are excluded for a period of e.g. two years.

Question 15

How does a claim for PMI begin

Answer 15

Referral from GP

Question 16

How are PMI payments taxed

Answer 16

Tax free

Question 17

What is mortgage PPI

Answer 17

Protection against not being able to pay mortgage due to sickness, accident or illness, involuntarily unemployment

Question 18

How long are mppi benefits usually payable for

Answer 18

12,18 or 24 months

Question 19

How long is the deferred payment in mppi

Answer 19

30 or 60 days

Question 20

Are mppi benefits taxed

Answer 20

No

Question 21

What are mppi policies sometimes called

Answer 21

short-term income protection

Question 22

Can mppi be sold same times as mortgage

Answer 22

no

Question 23

How could a self employed person claim on mppi

Answer 23

If business goes into liquidation

Question 24

What are the usual 4 eligibility criteria for mppi

Answer 24

Mortgages of main residence
Permenant residents in U.K.
Under 65
Employed

Question 25

How is ASu benefit paid

Answer 25

monthly or weekly benefit payable if the insured is unable to work due to accident, sickness or unemployment;

Question 26

What is the max length of time ASU benefit will be paid

Answer 26

2 years

Question 27

How is group ASU limited

Answer 27

To incidents at work

Question 28

IS asu taxed?

Answer 28

NO

Question 29

How do health Cash plans work

Answer 29

These are simple and relatively low-cost healthcare plans that pay up to 100% of the cost of treatment up to a preset annual limit or towards specified treatments, including optical and dental services

Question 30

How long is the waiting period for health cash plans normally

Answer 30

six months

Question 31

Why is health cash plans more common now than PMI

Answer 31

cheaper alternative for some cover

Question 32

How is PPI cover normals restricted

Answer 32

To minimum payment for 12 months

Question 33

When can PPI now be sold in relation. To a loan

Answer 33

Only after 7 days of loan sale or at point where a personalised illustration is provided