Factors to consider when choosing an insurance policy Flashcards
List the five factors one must consider when choosing an insurance policy
Cost Independent advice Needs and family circumstances Cover overlap Extent of cover
What is the mnemonic for remembering the factors one must consider when choosing an insurance policy?
Choosing Insurance Needs Careful Examination
Why must an individual consider the cost of an insurance policy?
(2)
Insurance policies have varied premium rates so individuals should shop around to find one which is affordable
One must also insure the premium matches both their needs and their budget
Why must an individual consider independent advice when choosing an insurance policy?
(2)
Insurance salespersons may not have the consumer’s best interests at heart as they often work on commission
Individuals should seek advice from consumer services such as consumerhelp.ie or insurance brokers e.g. Chill Insurance
When choosing an insurance policy who should an individual go to for advice?
(2)
Consumer services such as consumerhelp.ie
Insurance brokers such as Chill Insurance
Give an example of a consumer service which can help an individual choose their insurance policy
Consumerhelp.ie
Give an example of an insurance broker which can help an individual choose an insurance policy
Chill insurance
What is an insurance broker?
A person who provides independent advice about the insurance policies available from different companies and arrange insurance policies
Why must an individual consider the needs and family circumstances when choosing an insurance policy?
(2)
The needs and family circumstances influence the type of insurance cover necessary
A pregnant woman may need to ensure the private health insurance policy she chooses has suitable maternity cover
Why must an individual consider cover overlap when choosing an insurance policy?
(2)
One should carefully read the fine print on current policies before opting for additional insurance to prevent cover overlap
This can save money as additional coverage is not necessary
Why must an individual consider the extent of cover when choosing an insurance policy?
(2)
Insurance policies should be checked vigilantly for limitations and exclusions before paying a premium as these will not be covered by the insurance policy e.g. some house and building insurance policies don’t cover flood damage
Limitations refer to services with limited coverage for example a health insurance policy that covers the cost of a semi-private room but not a private room
Give an example of an exclusion in relation to insurance policies
A house and building insurance policies that doesn’t cover flood damage
Give an example of a limitation in relation to insurance policies
A health insurance policy that covers the cost of a semi-private room but not a private room
