Hello, I have the following queries regarding chapter 1:
1 - Under the Term Assurance, Page 4 states "Term assurance may be sold with critical illness cover", is this referring to the "accelerated critical illness cover" explained later in the chapter or is it something different ?
2 - Under the Income Protection Insurance, Page 6 states "Unemployment, redundancy, early retirement and reluctance to return to work are a few examples of situations that should not be covered by the policy and not all kinds of illness / physical injury will be covered either, eg attempted suicide". On the other hand page 9 states that "The insurer’s claims experience is subject to many influences totally outside the insurer’s control, eg economic and social influences such as unemployment trends". If the product is only designed to pay out on accidents and illnesses then why will the claims experience be affected by unemployment trends ?
3 - Under the Income Protection Insurance, Page 10 states "A rider to the policy may also cover the risk of unemployment". does that mean that an Income Protection Policy will not cover unemployment by itself but a rider will ?
4 - Under Critical Illness Insurance, Page 12 states "an ‘accelerated CI’ benefit would pay out on death, whereas a ‘stand-alone CI’ benefit would not.". That means an accelerated CI also pays out on death whereas Stand-alone CI would not, right ?
5 - Under Critical Illness Insurance, Page 12 states "In some jurisdictions, providers have also been selling critical illness covers for impaired lives. For example, products which provide cover to diabetes sufferers. The product is designed to encourage the customer to get treatment and stick with the treatment in order to get better premium rates". I assume that premium reviews generally happen on a portfolio level rather than on individual policy level, if this assumption is true than how will an individual customer benefit from better premium rates if he sticks with the treatment and improves his health but the experience on a portfolio level is poor.
6 - Under Endowment Assurance, Page 18 states "A group endowment assurance would enable an employer to provide benefits for employees at retirement, and maybe also on death in service". Why is there a maybe ? if there is no death element shouldn't it be called a pure endowment ?
1 - Under the Term Assurance, Page 4 states "Term assurance may be sold with critical illness cover", is this referring to the "accelerated critical illness cover" explained later in the chapter or is it something different ?
2 - Under the Income Protection Insurance, Page 6 states "Unemployment, redundancy, early retirement and reluctance to return to work are a few examples of situations that should not be covered by the policy and not all kinds of illness / physical injury will be covered either, eg attempted suicide". On the other hand page 9 states that "The insurer’s claims experience is subject to many influences totally outside the insurer’s control, eg economic and social influences such as unemployment trends". If the product is only designed to pay out on accidents and illnesses then why will the claims experience be affected by unemployment trends ?
3 - Under the Income Protection Insurance, Page 10 states "A rider to the policy may also cover the risk of unemployment". does that mean that an Income Protection Policy will not cover unemployment by itself but a rider will ?
4 - Under Critical Illness Insurance, Page 12 states "an ‘accelerated CI’ benefit would pay out on death, whereas a ‘stand-alone CI’ benefit would not.". That means an accelerated CI also pays out on death whereas Stand-alone CI would not, right ?
5 - Under Critical Illness Insurance, Page 12 states "In some jurisdictions, providers have also been selling critical illness covers for impaired lives. For example, products which provide cover to diabetes sufferers. The product is designed to encourage the customer to get treatment and stick with the treatment in order to get better premium rates". I assume that premium reviews generally happen on a portfolio level rather than on individual policy level, if this assumption is true than how will an individual customer benefit from better premium rates if he sticks with the treatment and improves his health but the experience on a portfolio level is poor.
6 - Under Endowment Assurance, Page 18 states "A group endowment assurance would enable an employer to provide benefits for employees at retirement, and maybe also on death in service". Why is there a maybe ? if there is no death element shouldn't it be called a pure endowment ?