Topic 10 - Dealing With Unexpected Events Flashcards
1
Q
What is general insurance?
A
Includes motor, buildings, home contents, travel and pet insurance policies
2
Q
What is life cover?
A
Die signed to protect others from the financial consequences of someone’s death
3
Q
Health insurance
A
Designed to protect others against the financial loss of being too unwell to work
4
Q
Define pension policies
A
Enables people to save for retirement
5
Q
Define premium
A
Price of an insurance policy
6
Q
Factors that affect premium
A
- how likely an event will occur
- sum insured, replacement/compensation costs
- term of the policy
- voluntary excess
- How the premium is oaid
7
Q
What are the consequences of not having third party motor insurance?
A
Fine of £300 and giving 6 penalty points to driving licence.
8
Q
What does third party insurance cover the cost of?
A
- injuries to others
- damages to other properties
- accidents caused by passengers
- Damaged caused by a caravan
9
Q
What does comprehensive motor insurance cover?
A
- third party items of insurance
- accidental damages to drivers car
- accident benefit
- medical expenses related to an accident
- loss or damage of personal possessions in the car
10
Q
What does contents insurance cover?
A
- electrical goods
- personal items
- furniture
- furnishings
- clothing
- money
- valuables eg jewellery
11
Q
Other ways we can deal with unexpected events financially
A
- revising budgets
- saving (ISAs)
- borrowing
