Topic 18 Types of Financial Protection 2 Flashcards
(21 cards)
What are “Rider Benefits”?
Benefits offered by a provider to customer to increase their benefits on a
- Life Assurance
- Critical Illness Cover (CIC)
- Income Protection Insurance (IPI)
What is a “Waiver of Premium” (WoP)?
Feature on an protection policy enables benefits are maintained if the insured cannot make the premium due to illness, accident or disability
If a customer ops to go for a “Waiver of Premium” (WoP) how much would their premiums raise by?
4%-6%
If a protection policy is done on an joint basis what may happen if the claim on a “Waiver of Premium” (WoP)?
It may only be payable to one of the lives assured
What is “Terminal Illness Cover?
Accelerated payment of deal benefits on a life or Income Protection Insurance (IPI) of the life assured has a short period to life
“Terminal Illness Cover” is payable if the claimant has how long to life?
12 months or less
What is “Accidental Death Benefit”?
Policy that pays a multiple of sum assured if death is an accident
What is “Total & Permanent Disability Cover”?
Pays an accelerated sum in the insured is permanently incapacitated from working
What do “Guaranteed Insurability Options” enable the sum assured to do?
Be increased without the need for medical underwriting
What are the below in relation to life changing benefits?
- Divorce, Civil partnership dissolution or separation
- Buying a house
- Moving house
Situations where a Life policy’s sum assured can be increased without needing further underwriting
What are the below in relation to life changing benefits?
- Having or adopting a child
- Child starting further education
- Substantial salary increase
Situations where a Life policy’s sum assured can be increased without needing further underwriting
If a joint life policy ends with the death of 1 of the policy holders what policy would the surviving spouse need that does not require underwriting?
Replacement Benefit
What policy can be used if a couple split with a joint policy but both still want to be covered by life assurance?
Separation benefit
What is a “Death in service” benefit that is offered by an employer?
When an employee dies when employed the employer pays out a multiple of their salary to the their family
These are what in relation to group cover offered by employers?
- Reducing long term absences
- Promoting well being
- Premiums are generally qualifying (can be offset against business tax bill)
Advantages of group schemes for a business
Where building’s insurance is concerned what can “Fixtures” be described as?
Items attached to the property
- Fitted kitchens
- Fixed wardrobes
- Window glass
What is meant by “Perils” in home insurance terms?
Things that cause financial loss
In relation to home insurance what are the below?
- Fire & resultant smoke damage
- Lighting, explosion & earthquake
- Storm & flood
Standing perils in building insurance policies
In relation to home insurance what are the below?
- Subsidence, landslip, heave
- Impacts
- Theft and attempted theft
Standing perils in building insurance policies
In relation to home insurance what are the below?
- Vandalism, malicious damage
- Escape of oil
- Escape of water (freezing or bursting pipes)
Standing perils in building insurance policies
How would a provider of home insurance reduce the number of claims?
Adding an “Excess” to their claims policy
