Topic 10 Flashcards
(24 cards)
Benefit
A government payment made to individuals who meet specific conditions to help them meet their living expenses. For example, people who are disabled and are unable to work.
Budget
A plan of expected incomings and outgoings over a set time period such as a month.
Citizens Advice
A charity providing free, independent and confidential advice on citizens and consumers rights and responsibilities.
Credit Card
A card that allows the holder to make purchases face to face, online or over the phone. However, the provider pays for the transactions, and the card holder repays the provider in a single payment or instalments.
Discretionary Expenditure
Voluntary spending on products and services that people want now, and savings towards items that they aspire towards in future.
Essential Expenditure
Spending on items required to live, e.g. rent or mortgage repayments, food and drink, water supplier, gas and electricity
Financial Ombudsman Service FOS
An independent body set up by Parliament that settles customer complains about providers at no charge to consumers.
Fronting
A fraudulent method of lowering car insurance costs by naming a person as the main driver on a policy when they are not.
General Insurance
A broad category of insurance that provides protection against financial losses associated with events such as car accidents (motor insurance) or theft (home contents insurance) etc
Health Insurance
Products used to protect against the financial loss of being too unwell to work or 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 a stocks and shares ISA. Junior ISAs are available for under 18s. Rebranded as NISAs in 2014 when the rules were changed.
Inheritance
The property, e.g. money etc, passed on from one person to another upon death.
Insurance Certificate
A document issued by the insurance provider that verifies the existence of coverage for the policyholder and offers a summary of the cover given.
Life cover
Products designed to protect other people from the financial consequences of another person’s death, also called life assurance.
Mandatory expenditure
Compulsory outgoings, not necessarily applying to everyone, but those who have them must pay them.
Money advice service
A consumer information service set up by the government to help people make informed financial decisions
Mortgage
A long term loan taken out to pay for a property, usually for a period like 25 years
No claims discount
A discount on the insurance premium that builds up each year that a person does not make a claim
Pension policy
A product that enables people to save money for their retirement
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, the length of the policy etc.
Redundancy
Losing a job because a business no longer wants, needs or can afford that job to be done, related to the business not the person
Sum insured
The maximum amount an insurance provider will pay out
Third party insurance
Insurance that covers damage to other people or their property but does not cover the policyholder for what they suffer themselves
Voluntary excess
The amount paid by the policyholder on a claim before the insurance company will pay anything. Compulsory excess is usually set but consumers can opt for a higher voluntary excess in exchange for a lower premium.
