Finance Company's Flashcards
what is a insurance company?
profit making business that protect their customers from the risk of loss for a premium
insurance company advantage
protect against unexpected losses
monthly payments making planning easy
insurance company disadvantage
premiums are assessed on the estimated degree of risk
premiums will be charged to ensure shareholder needs are met
what is credit union?
non for profit organisation that handle finance transactions and store money for their members
credit union advantages
secure place for money
owned by members so costs are low
loads of services and account types
credit union disadvantages
savings are only protected up to £85,000
lack of business drive
what are national savings and investments?
governments backed organisation that offers a secure saving options
offers a range of savings : ISA’s, Premium Bonds
national savings and investments advantages
100% secure
offering additional services and methods
national savings and investments disadvantages
rates are variable
lack of high street presence
what is a pension company?
sell policies to individuals, either privately or through employees that allows them to save money to fund their retirement
pension company advantages
help plan for financial security after retirement
experts are employed to make investment decisions
pension company disadvantages
may result in disappointing return
what are pawnbrokers?
a business who loan money against the security of a personal asset
prawnbroker advantage
interest is not charged
asset can be bought back within a set time
prawnbroker disadvantage
amount given for asset is always lower
not repaid within the agreed time the asset will be sold
