2. Main Areas of Financial Advice: The Present Flashcards
1
Q
Critical Illness
A
Pays a lump sum on diagnosis of a specific illness
2
Q
Structured loans
A
Fixed interest payable over the full term of loan
3
Q
Unstructured loans
A
E.g. mortgages - because you can increase payments and repay early
4
Q
Whole of life policy
A
Guaranteed level of cover for the policy holders life
5
Q
What is a convertible term insurance
A
Allows policy holder to convert policy to an endowment policy or a whole of life policy
6
Q
What % of earnings will the insurance company restrict with an income protection policy
A
50-60% of earnings
