Chapter 9- Other Insurance Based Products

Question 1

How long does a personal accident a sickness policy usually last

Answer 1

Annual or shorter eg 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 a cider and sickness insurance

Answer 4

Nope

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

What does PMI do

Answer 6

Covers cost of private medical care

Question 7

What type of illness is PMI designed for

Answer 7

Acute rather than chronic

Question 8

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

Answer 8

Cancer

Question 9

What are the limitations on basic PMI

Answer 9

No extra benefits
Cover often limited
Often the insured must cover the first part of costs

Question 10

What is one of the benefits offered under standard plan

Answer 10

Wider choice of hospitals

Question 11

What are the extra benefits on a comprehensive PMI plan

Answer 11

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

Question 12

What is a moratorium

Answer 12

Medical conditions present within a number of years or the start of covere will be excluded for first few years of the policy but removes need for full medical uw

Question 13

How does a claim for PMI begin

Answer 13

Referral from GP

Question 14

How are PMI payments taxed

Answer 14

Tax free

Question 15

What is mortgage PPI

Answer 15

Protection against not being able to pay mortgage due to accident or illness

Question 16

How long are mppi benefits usually payable for

Answer 16

12,18 or 24 months

Question 17

How long is the deferred payment in mppi

Answer 17

30 or 60 days

Question 18

How could a self employed person claim on mppi

Answer 18

If business goes into liquidation

Question 19

What are the usual 4 eligibility criteria for mppi

Answer 19

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

Question 20

How is ASu benefit paid

Answer 20

Monthly or weekly if unab,e to work due to accident sickness or unemployment

Question 21

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

Answer 21

2 years

Question 22

How is group ASU limited

Answer 22

To incidents at work

Question 23

How do health ash plans work

Answer 23

Pay up to 100% of cost of treatment up to annual limit

Question 24

How is PPI cover normals restricted

Answer 24

To minimum payment for 12 months

Question 25

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

Answer 25

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

Question 26

What are the 12 factors shaping a clients needs

Answer 26

Age 
Marital status 
Dependents
Wills
Health
Occupation
Hobbies
Income
Expenditure 
Liabilities
Benefits
Existing policies

Question 27

What are the 5 steps in the life assurance planning process

Answer 27

Identify general need
Quantify amount of capital and income needed
Determine how long cover for each need is required
Take into account existing policies
Recommend appropriate types of policy