Chapter 4: Introduction to financial products and customer needs

Question 1

Different types of needs a person might have and products to help provide this need

MPAA
LAV SPF

Answer 1

IDENTIFY STAKEHOLDERS

CONSIDER LOGICAL VS EMOTIONAL NEEDS
LOGICAL:
- Maintain current lifestyle
- Protection
- Accumulation for a purpsose
- Accumulation for a purpose not yet known

CURRENT:
Living expenses
Accomodation needs
- Buying a home - Mortgage loan
Vehicle and transportation cost
- Vehicle financing 
- Vehicle insurance

FUTURE:
Saving for retirement 
- Pension fund/ Annuity
- Investment vehicles
Protection against illness/ Injury
- Income protection 
- Private Medical insurance
- Disability cover
- Critical illness
- Frail care
Family in case of death
- Life insurance
- Will 
- Assets in trusts

After Logical has been provided for, determine how emotional needs can be met

Question 2

For each need, Analyse if the need is:`

CREMS

Answer 2

Current/ Future
Real/Nominal 
Emotional/Logical
Match a product
Savings/Protection