Insurance Products Flashcards
Benefit
A government payment made to individuals who meet specific
conditions to help them meet their living expenses. For example,
people who are unemployed, unable to work because they care for
a disabled person, or have a disability may be entitled to benefits
if they meet the criteria.
budget
A plan of expected incomings and outgoings over a set time
period such as a month.
General insurance
A 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
Products used to protect against the financial loss of being too
unwell to work or being diagnosed with a critical illness
Individual savings account (ISA)
An account that pays interest tax-free on savings up to a certain
level. There are two types of ISA: cash ISAs and stocks and shares
ISAs. Junior ISAs are available for people under 18.
Insurance certificate
A document issued by an insurance provider that verifies the
existence of coverage for the policyholder, and offers a summary
of the cover given.
Mandatory expenditure
Compulsory outgoings; they do not necessarily apply to everyone
but if they do apply, they must be paid
Life cover
Products designed to protect other people from the financial
consequences of someone’s death. Also called life assurance
No claims discount
A discount on the insurance premium that builds up for each year
a person does not make a claim
Third-party insurance
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
Redundancy
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 jo
Credit card
A card that allows the holder to make purchases face to face,
online or over the phone, and to withdraw cash from an ATM.
Unlike a debit card, where the money is taken from the holder’s
own account, transactions are paid by the card provider. The card
holder repays the amount owed to the provider either in one
payment or in instalments. The provider charges interest on cash
withdrawals from the time the withdrawal is made and on
purchases after a certain period
Voluntary excess
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, but consumers
can opt for a higher voluntary excess in exchange for a lower
premium
Premium
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.
