What is a rider benefit?
Allows a customer to increase the level of cover for LA, CIC and IP plans.
What is a waiver of premium?
A mini insurance policy designed to cover the cost of the monthly premiums on another insurance policy.
How much does WOP increase premiums by?
4-6%
Who is a WOP beneficial for?
The self-employed.
When does a WOP kick in?
When someone can’t meet the payments on an assurance policy due to illness.
What is terminal illness cover?
An accelerated death benefit when someone has a life expectancy for under 12 months.
What is total permanent disability cover?
Pays out an accelerated benefit when someone becomes incapacitated.
What is Guaranteed Insurability?
Enables the sum assured to be increased without the need for medical underwriting.
What is life changes benefit?
Pays out when someone experience a significant life event that they can evidence and can then increase the sum assured without medical underwriting.
What is replacement benefit?
Where the remaining policyholder can start a new policy following the death of the other.
What is separation benefit?
When you can split a policy into 2 separate ones when a couple split up.
What is a death in service benefit?
Pays out a multiple of the employers salary upon death for the family.
What is a group employers scheme?
Where the employer arranged a policy such as LA or CIC and is paid by the company. The premiums are normally classed as a business expense for tax.
What are common standard exclusions for buildings insurance?
- Damage from water/oil if unfurnished
- Damage to gates/fences from falling trees
- Theft when property is unoccupied
- Rusting or corrosion of heating system
What is the principle of averaging?
When the insurer discovers that the property is under insured and they can charge a penalty.
Who needs to approve the buildings insurance provider?
The mortgage lender.
Who organises the buildings insurance for a leasehold property?
The freeholder.
What do self-build insurance policies provide?
- Site insurance, public and employers liability cover.
- 10 year structural warranty
What does contents insurance do?
Insures the home against theft and damage.
What additional risks do BTL landlords face?
- Damage to property
- Tenants defaulting
- Tenants causing damage
What is ASU?
Type of general insurance that might be used as an alternative/ in conjunction with IP.
What are the two variants of ASU?
MPPI and PPI.
What exclusions are there with ASU?
- Any redundancy will not be covered
- Unemployment won’t be covered if self-employed
- Pre-existing conditions not covered
What is PPI? (Payment Protection Insurance)
Protect repayments on a loan or a debt tax free. Deferred period of 30-60 days.
