Insurance

Question 1

2 advantages of car/motor insurance

Answer 1

Can build up a no claims bonus, may allow your insurance provider to offer discounts on your premiums
Provides protection against liability claims from other drivers

Question 2

2 disadvantages of car/motor insurance

Answer 2

Expensive for new drivers
Policy excesses can be high (especially for new or young drivers)

Question 3

2 advantages of home and contents insurance

Answer 3

Home insurance covers the cost of rebuilding or repairs as a result of fire, flooding, etc.
Contents insurance covers loss or damage to personal possessions

Question 4

2 disadvantages of home and contents insurance

Answer 4

Only covers the cost of rebuilding the property, not the market value
Unique items can’t be replaced

Question 5

2 advantages of life insurance

Answer 5

Large sum paid in the event of a death
Cheaper than life assurance

Question 6

2 disadvantages of life insurance
(1 con of assurance too)

Answer 6

Not a guaranteed payout as the insured person may live past the certain period
Individuals with health conditions may have higher premiums (con of assurance too)

Question 7

Two advantages of life assurance

Answer 7

Guaranteed payout
Offers peace of mind, as long as premiums are maintained

Question 8

2 disadvantages of life assurance

Answer 8

Higher cost due to length of insurance
Payouts are linked to the performance of investments which could lead to a decrease of payout to the policy holder if investments underperform

Question 9

Advantages of travel insurance

Answer 9

Provides cover for delays, cancellation, loss of personal possessions whilst on the trip
Provides cover for emergency medical expenses

Question 10

2 disadvantages of travel insurance

Answer 10

Pre-existing medical conditions aren’t usually covered
Payouts may not cover the full amount of the financial loss

Question 11

2 advantages of pet insurance

Answer 11

Cover provided for personal injury or damage caused by the animal
If animal has a serious illness, you can opt for lifetime cover, for an additional premium

Question 12

2 disadvantages of pet insurance

Answer 12

Vaccinations aren’t covered
Pre-existing medical conditions aren’t covered

Question 13

2 features of health insurance

Answer 13

Annual health check
Private consultations

Question 14

2 advantages of health insurance

Answer 14

Covers some or all medical costs with convenient treatment times
Can choose types of illnesses and treatment you want to cover

Question 15

2 disadvantages of health insurance

Answer 15

Pre-existing medical conditions aren’t covered
Medical conditions which arise during the initial period of the policy may not be covered

Question 16

1 disadvantage of travel insurance, pet insurance, health insurance

Answer 16

Pre-existing medical conditions aren’t covered