Financial Studies Unit 1 Topic 10 0.0 / 5 ? AllFinancial StudiesAll LevelsAll boards Created by: rswift91Created on: 07-01-21 13:31 Give two ways you can financial prepare for unexpected events Insurance Save 1 of 17 It is possible to be insured on many things. What are the four main types of cover people choose to take out? General Pension Life Health 2 of 17 What is an insurance Premium? The cost of insurance 3 of 17 What main factors affect a premium cost? Amount of cover Likelihood of incident Length of time Payment method Excess agreed 4 of 17 Why is it more expensive to choose monthly insurance? You are entering into a credit agreement, therefore there is a degree of risk to the insurer 5 of 17 True or False. Providers pay tax on insurance False the purchaser pays the tax through their premium 6 of 17 What did the Consumers Insurance Act 2012 do? Made insurers liable for gathering the correct information from customers 7 of 17 When receiving policy documents what two things should you identify? The policy covers the event you want It provides a sufficient monetary value 8 of 17 What is compulsory under The Road Traffic Act 1988? A minimum of third party fire and theft cover for the driver 9 of 17 Third party fire and theft covers... Injuries to other people Injuries to properties Damage as a result of a passenger Damage caused by a caravan or trailer 10 of 17 Comprehensive motor insurance covers The same as third party fire and theft Accidental damage to vehicle Personal injury Medical costs Loss of personal possessions 11 of 17 What is pay as you go insurance A GPS fitted to your car which monitors; when you travel, how fast, how safely, how often. 12 of 17 How can someone reduce the cost of their motor insurance? Shop around Fit an alarm Use for social purposes only Higher excess Build no claims discount Get a smaller engine vehicle 13 of 17 True or False. A tenant is expected to pay for buildings insurance? False this is covered by the owner 14 of 17 What can someone do if they experience an unexpected event which impacts their finances negatively? Draw up a budget to see where they can save money 15 of 17 What can you do if you come into unexpected money? Save it Spend it Pay off debt Create an emergency fund 16 of 17 What is the recommended value of an emergency fund? Enough to cover Mandatory and Essential Expenditure for three months 17 of 17
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