LIBF Unit 1 Year 10 Vocabulary 2 | Baamboozle - Baamboozle

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What is the only legal insurance we must have?

Car insurance

Explain fully comprehensive insurance

Fully covers the policy holder for the item insured, the person and other people or belongings damaged

Explain what third party insurance means

An insurance policy that covers damage to another person's car, along with compensation costs for injuries to other people. This type of cover won't c

What is included in buildings insurance?

The building, potential fire, flood or storm damage,

Explain financial risk vs reward

the prospective reward an investor can earn for every pound they risk on an investment.

What things can inflation affect?

Budgets, household goods, food, cost of petrol, utility bills, savings

Who sets the rate for interest?

The Bank of England

What can travel insurance cover?

Delayed flights, cancelled holidays, illness, lost luggage, financial loss,

If my savings account offers 6% but inflation is currently at 5% what am I actually earning from my savings?

1%

What factors can affect a persons life cycle and budgeting?

Location, family wealth/lack of, education of finance, money management skills, education level

If interest rates go up who is this good for?

Savers

Give an example of an external influence that can affect a persons life cycle?

Inflation, Interest rates, recession, unemployment, age of population, pension

What is the governments inflation target?

2%

What is the term used to describe how long a person may live for?

Life expectancy

If I borrow £5000 as a personal loan and the interest rate is at 1%, and a set up fee of £50 is added, how much do I actually pay back?

£5100 (5000 + 1%= 5050 + 50 = 5100)

What is life assurance?

A policy that covers a persons life and pays out a tax-free sum to whoever you choose when you die.