5279808
Description
Flashcards by Jevgenija Zukova, updated more than 1 year ago
|
Created by Jevgenija Zukova
almost 8 years ago
|
|
| Question | Answer |
| What covers life assurance and what are the two types of it? | Cover expenditures after a person dies.(outstanding debt) 1. Whole-of life assurance 2. Term assurance |
| What is whole-life assurance? | It's the policy which pays off the assured sum once the person dies. It's more expensive and ,therefore, less common. |
| What is term assurance? | It's the policy which pays the assured sum IF the person dies BEFORE THE END OF SPECIFIED TERM. Disadv. - you loose money if you don't die xD *This policy s suitable for a mortgage protection. |
| Why would you buy life assurance? | >Protects family > Protects debt > Manages a tax liability >Cover for older people |
| What is critical illness insurance? | It's the policy which pays out a lump sum if a person is diagnosed with a critical illness. |
| What is income protection insurance? | It's the policy that helps people to deal with unemployment up to long-term. |
| What is the accident, sickness and unemployment insurance? | It's the policy that provides cover to the insured party in the event of an accident or sickness that prevents them from working (in worst case, they become unemployed) It pays out for a max of 12/24 months. Can be linked to loans and credit cards(PPI) |
| What is the insurance in terms of risk? | Risk transfer |
| How insurance helps in risk management? | Insurance deals with negative unforeseen events. |
| How savings and investments deal with risk? | 1. Savings help to deal with unforeseen events. 2. Investment will manage the unexpected income ( money from lottery). |
| State 6 features that FSCS offers a maximum protection for | 1. Investments(100% of the first 50,000 per person per firm) 2. Home finance 3. Long-term insurance 4. Compulsory insurance and Non-compulsory insurance 5. General insurance advice and arranging. 6. Deposits in banks, building societies and credit unions. |
| How to deal with long-term risk? | > Make a will > Provide for inheritance tax >Open a trust fund for a child > Wards |
| How the inheritance tax is paid? | It's paid on the estate if the value of the estate exceeds a certain amount(nil band). |
| By which features do you mix products? | 1. Savings and borrowing 2. Shot,medium,long-term products 3. Different types of the same product 4. Different providers |
Want to create your own Flashcards for free with GoConqr? Learn more.