Chapter 4 - Financial Products and Customer Needs Flashcards
1
Q
What type of benefits exist?
A
- Unpredictable on whether and when they might occur
- certain to occur, unpredictable in time
- Immediate consumption
- predictable in time
- accumulation of disposable income and capital
2
Q
What type of benefits exist?
A
- Social Security
- Financial Products and Contracts (Insurance/Reinsurance)
- Pension Schemes
- Benefit Schemes (Medical Aid/UIF, typically not for profit)
- Investment Schemes
- Micro-Insurance
- Derivatives
3
Q
What are the 3 main Principles of Insurance?
A
- Insurable Interest
- pre-funding
- pooling of risk
4
Q
How do you analyse customer needs?
A
- Logical and Emotional needs
- Current vs Future needs
- Attitude to risk
- Vulnerability
5
Q
How can a customer’s logical needs be analysed?
A
- maintaining current lifestyle
- protection
- accumulation for a purpose
- accumulation for an unknown purpose
