CH 4 Introduction to financial products and customer needs Flashcards
1
Q
Give the categories of benefits
A
Benefits on:
- unpredictable events (whether and when will occur)
- certain events, uncertain timing
- for immediate consumption
- events predictable in time
- from accumulation of disposable income and capital
2
Q
What are the main types of provision
A
- Social security
- Financial products and contracts (Insurance, Reinsurance)
- Pension schemes
- Benefit schemes
- Investment schemes
- Derivatives
3
Q
What are the three main insurance principles
A
- Insurable interest
- Prefunding
- Risk pooling
