Insurance

• What are the 6 types of insurance?

  • Motor
  • Life insurance & assurance
  • Travel
  • Home and contents
  • Health
  • Pet
• Pros of motor insurance

  • Satisfies legal requirements to have it
  • 3 levels of cover to meet individual requirements (third party, third party fire and theft, fully comprehensive)
  • Build a no claims bonus
  • Protection against liability claims
• Cons of motor insurance

  • Expensive for new/young drivers
  • Policy excesses can add to costs in the event of a claim
• Pros of home and contents insurance

  • Covers cost of rebuilding/repairs
  • Contents insurance covers loss/damage to personal possessions
  • Additional security precautions can reduce premiums
• Cons of home and contents insurance

  • Only covers cost or rebuilding the property not the market value
  • May be a limit on what you can claim
• Pros of life insurance

  • Pays sum of money in event of death
  • Can be used as collateral
  • Pay-out may be larger than total amount of premiums paid
• Cons of life insurance

  • Life assurance pay-outs are linked to performance of investments
  • Pre-existing medical conditions may not be covered
• Pros of travel insurance

  • Provides cover for delays, cancellation or curtailment of the trip
  • Provides cover for loss of personal possessions
  • Provides cover for emergency medical expenses
• Cons of travel insurance

  • Pay-outs may not cover the full amount of financial loss
  • High-risk sporting activities require additional premium
  • Pre-existing medical conditions aren't covered
• Pros of pet insurance

  • Vet bills can be expensive
  • Can opt for a lifetime cover for serious illnesses for an additional premium
• Cons of pet insurance

  • Pre-existing medical conditions aren't covered
  • Limit on amount of medical expenses covered
  • Vaccinations are not covered
• Pros of health insurance

  • Covers private medical costs with convenient treatment times
  • You can choose the types of illnesses and treatment you want to cover
• Cons of health insurance

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