R05 Health cash plans and dental plans: free practice questions

1. Question 1 of 5

   What does a health cash plan typically provide?

   Option A: A lump sum payable on the diagnosis of a specified cancerOption B: Cash towards set treatments within annual limits, plus hospital cashOption C: A full indemnity for the cost of all private hospital treatmentOption D: A regular replacement income payable until retirement age

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   The answer is B: Cash towards set treatments within annual limits, plus hospital cash

   Health cash plans pay up to 100% of the cost of specified treatments within annual limits, and often a fixed sum per day in hospital. They are much cheaper and more limited than PMI.

   Why the other options are wrong

   A

   A lump sum on a cancer diagnosis is critical illness cover.

   C

   Full indemnity for private treatment is PMI, not a health cash plan.

   D

   A replacement income is income protection.

2. Question 2 of 5

   Which statement about health cash plans is INCORRECT?

   Option A: There is often a waiting period of up to six monthsOption B: They provide a full indemnity against the cost of private treatmentOption C: Employers increasingly provide them for their whole workforceOption D: Pre-existing conditions are usually excluded

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   The answer is B: They provide a full indemnity against the cost of private treatment

   Health cash plans give money towards care rather than full indemnity against private treatment costs as PMI does. The other statements are correct.

   Why the other options are wrong

   A

   This is correct: waiting periods of up to six months are common.

   C

   This is correct: employers increasingly offer them to their whole workforce.

   D

   This is correct: pre-existing conditions are usually excluded.

3. Question 3 of 5

   Zoe's dental plan pays up to a set amount per filling. She chooses a more expensive filling material. What might happen?

   Option A: The NHS will pay the difference between the plan and the chargeOption B: The plan's maximum may be below the charge, leaving her to pay the restOption C: The plan will pay the full cost of the filling, whatever material is usedOption D: The plan will be cancelled for choosing private materials

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   The answer is B: The plan's maximum may be below the charge, leaving her to pay the rest

   Many dental plans pay a maximum benefit that may be below the dentist's charge, particularly where more expensive treatment options are chosen.

   Why the other options are wrong

   A

   The NHS won't pay the difference on private treatment.

   C

   Plans often pay a fixed maximum, so the full cost may not be met.

   D

   Choosing a dearer material doesn't cancel the plan.

4. Question 4 of 5

   What has contributed to more people buying dental plans?

   Option A: Dental treatment costs have fallen sharply across the UK in recent yearsOption B: PMI now covers all dental treatmentOption C: NHS dentistry has become free for all adults in EnglandOption D: A reduction in NHS practices, making NHS treatment harder to obtain

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   The answer is D: A reduction in NHS practices, making NHS treatment harder to obtain

   Changes in NHS dentist payments reduced the number of NHS practices, making NHS dental treatment harder to obtain and increasing interest in dental plans.

   Why the other options are wrong

   A

   Dental costs haven't fallen sharply.

   B

   PMI doesn't cover all dental treatment.

   C

   NHS dentistry isn't free for all adults.

5. Question 5 of 5

   How does a health cash plan's cover compare with a full PMI contract?

   Option A: It is identical but paid monthlyOption B: It is more comprehensive than PMI, and more expensiveOption C: It covers chronic conditions that PMI excludesOption D: It is much more limited, but offers some cover at low cost

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   The answer is D: It is much more limited, but offers some cover at low cost

   Cover is much lower than full PMI, but a health cash plan provides at least some support with healthcare costs for a modest premium.

   Why the other options are wrong

   A

   It isn't the same cover; it's much more limited.

   B

   It's less comprehensive and cheaper than PMI, not more.

   C

   Health cash plans don't cover chronic conditions that PMI excludes.

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