Topic 10 key terms(dealing with unexpected events) Flashcards
benefit
definition: government payment made to individuals who meet specific
conditions to help them meet their living expenses,people who are unemployed
budget
definition: A plan of expected incomings and outgoings over a set time period such as 3 month
citizens advice
definition: charity providing free, independent, confidential and impartial
advice on citizens” and consumers” rights and responsibilities
credit card
definition: card that allows the holder to make purchases face to face,
online or over the phone, and to withdraw cash from ATM,transactions are paid by the card provider
discretionary expenditure
definition: Voluntary spending on products and services that people want
now, and savings towards items they aspire to buy in the future
essential expenditure
definition: Spending on items required to live, eg rent or mortgage repayments, food and drink
financial ombudsman service(FOS)
definition: independent body set up by Parliament that settles customer
complaints about providers at no charge to consumers
fronting
definition: fraudulent method of lowering car insurance costs by naming
a person as the main driver on a policy when they are not
general insurance
definition: broad category of insurance that provides protection against
financial losses associated with events such as car accidents(motor insurance), loss of or damage to a home or its contents (buildings and home contents insurance), problems with a holiday (travel insurance) and vet bills (pet insurance).
health insurance
definition: Products used to protect against the financial loss of being too
unwell to work or being diagnosed with a critical illness
individual savings accounts(ISA)
definition: account that pays interest tax-free on savings up to a certain level,two types of ISA: cash ISAs and stocks and
shares ISAs,Junior ISAs are available
inheritance
definition: property, money, etc, passed from one person to another upon death
insurance certificate
definition: document issued by an insurance provider that verifies the
existence of coverage for the policyholder, and offers a summary of the cover given
junior ISA
definition: Junior ISAs are long-term savings accounts set up by a parent or
quardian specifically for the child’s future
life cover
definition:Products designed to protect other people from the financial
consequences of someone’s death
mandatory expenditure
definition: Compulsory outgoings; they do not necessarily apply to everyone but if they do apply, they must be paid
Money helper
definition: independent organisation set up by the government to support people to make the most of their money and pensions
mortgage
definition: loan taken out to pay for a property, usually over a long term
no claims discount
definition: discount on the insurance premium that builds up for each
year a person does not make a claim
pension policy
definition: A product that enables people to save money for their retirement
premium
definition: The price of an insurance policy, based on factors including how
likely an event is to occur, the amount of money needed to rectify the situation should the event happen, the length of time the policy will be in force, and how the premium is paid.
redundancy
definition: Losing a job because the business no longer needs, wants or can
afford that job to be done; it is related to the needs of the business and not to how well or badly an individual does their job
sun insured
definition: The maximum amount an insurance provider will pay out
third part insurance
definition: Insurance that covers damage that the policyholder causes to someone else (the ‘third party”) or to their property but does not cover the policyholder for any injury or loss that they suffer themselves
voluntary excess
definition: The excess is the amount paid on any claim by the policyholder
before the insurance company will pay anything,a compulsory excess is usually set by the insurance company
