Chapter 4 - Introduction To Financial Products And Customer Needs Flashcards
1
Q
Benefits
A
Unpredictable event Unpredictable in time Immediate consumption Predictable in time Accumulation of disposable income and capital
2
Q
Types of provision
A
Social security Financial products Contracts Schemes Transactions
3
Q
Social security benefits
A
Offered by state.
Means tested
4
Q
Insurance contracts
A
Pay individual or heirs
5
Q
Reinsurance contract
A
Pass some of the risk on
6
Q
Benefit schemes
A
Short term
Annually renewable
7
Q
Pension schemes
A
Accumaulation of funds pay out later
Retirement, death, withdrawal
8
Q
Investment schemes
A
Higher amount paid back at later date
9
Q
Derivatives
A
Value dpend of value of other investments or variables
10
Q
Insurance principles
A
Insurable interest
Pre funding
Pooling of risk
11
Q
Customer needs
A
Differentiate:
Logical and emotional
Current and future
Logical needs: Maintaining current lifestyle Protection Accumulation for a purpose Accumulation for unknown purpose
