Topic 10 key terms(dealing with unexpected events)

Question 1

benefit

Answer 1

definition: government payment made to individuals who meet specific
conditions to help them meet their living expenses,people who are unemployed

Question 2

budget

Answer 2

definition: A plan of expected incomings and outgoings over a set time period such as 3 month

Question 3

citizens advice

Answer 3

definition: charity providing free, independent, confidential and impartial
advice on citizens” and consumers” rights and responsibilities

Question 4

credit card

Answer 4

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

Question 5

discretionary expenditure

Answer 5

definition: Voluntary spending on products and services that people want
now, and savings towards items they aspire to buy in the future

Question 6

essential expenditure

Answer 6

definition: Spending on items required to live, eg rent or mortgage repayments, food and drink

Question 7

financial ombudsman service(FOS)

Answer 7

definition: independent body set up by Parliament that settles customer
complaints about providers at no charge to consumers

Question 8

fronting

Answer 8

definition: fraudulent method of lowering car insurance costs by naming
a person as the main driver on a policy when they are not

Question 9

general insurance

Answer 9

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).

Question 10

health insurance

Answer 10

definition: Products used to protect against the financial loss of being too
unwell to work or being diagnosed with a critical illness

Question 11

individual savings accounts(ISA)

Answer 11

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

Question 12

inheritance

Answer 12

definition: property, money, etc, passed from one person to another upon death

Question 13

insurance certificate

Answer 13

definition: document issued by an insurance provider that verifies the
existence of coverage for the policyholder, and offers a summary of the cover given

Question 14

junior ISA

Answer 14

definition: Junior ISAs are long-term savings accounts set up by a parent or
quardian specifically for the child’s future

Question 15

life cover

Answer 15

definition:Products designed to protect other people from the financial
consequences of someone’s death

Question 16

mandatory expenditure

Answer 16

definition: Compulsory outgoings; they do not necessarily apply to everyone but if they do apply, they must be paid

Question 17

Money helper

Answer 17

definition: independent organisation set up by the government to support people to make the most of their money and pensions

Question 18

mortgage

Answer 18

definition: loan taken out to pay for a property, usually over a long term

Question 19

no claims discount

Answer 19

definition: discount on the insurance premium that builds up for each
year a person does not make a claim

Question 20

pension policy

Answer 20

definition: A product that enables people to save money for their retirement

Question 21

premium

Answer 21

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.

Question 22

redundancy

Answer 22

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

Question 23

sun insured

Answer 23

definition: The maximum amount an insurance provider will pay out

Question 24

third part insurance

Answer 24

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

Question 25

voluntary excess

Answer 25

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