Topic 10 Flashcards
What is a premium and what is the price based off of
Premium is a price of a insurance policy
Based off :
How likely a event is to occur
The amount of money needed to put things right if the event happens known as the sum insured
The length of time that the policy will be in force know as the term
The amount of money the policy holder will pay towards repairs or replacement
How the premium is paid
What are policy documents
When people have paid insurance premium they receive this document and a certificate of insurance it covers the terms and conditions for policy holders making a claim policy holder need to check that insurance they have bought
Covers the events the policy holder wants to insure against
And will pay sufficient compensation if the event occurs
Types of motor insurance
Third party motor insurance is traditionally the lowest cost motor insurance available motorists have a choice of two other ones aswel third party fire and theft or comprehensive motor insurance which tends to be the most expensive covering more things there is also pay as you go insurance which tends to be the cheapest one this one is better for people who don’t drive as much
What is good debt and bad debt
Good debt is debt that is affordable or student loan that helps finance studies to lead to a higher paying job
Bad debts are debts that are unaffordable or the money borrowed is for items that do not have long term value an example is not paying your credit card debt which ends up costing you more
How long does money helper recommend you have emergency funds for
3 months
Ways to manage unexpected expenditure
Revising budgets
Saving
Borrowing
Benefits
