BTEC FINANCE Level 3 - Unit 3 – Finance Latest Exam Graded A+

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what are the advantages of life insurance? - ANSWER provides permanent protection, flexible, tax benefits, low premiums for new policies what are the advantages of travel insurance? - ANSWER good f... or emergencies (can get booking costs back if your flights are cancelled), if you contract a disease your travel insurance will cover treatment costs that your medical insurance might not, may policies provide coverage for lost, stolen or damaged luggage what are the advantages of pet insurance? - ANSWER can cover unexpected vet bills, provides peace of mind, can save the life of your pet, allows you to know your veterinary costs ahead of time what are the advantages of health insurance? - ANSWER gives you the opportunity to maintain or improve your health by providing a low cost way to attend your physician visits and buying affordable prescription drugs, flexible plans that can be customised, covers surgery and emergency bills, provides peace of mind what are the disadvantages of car insurance? - ANSWER premiums can be high depending upon assessed level of risk, normally there is an excess that must be paid what are the disadvantages of home & contents insurance? - ANSWER doesn't cover flood damage or freezing of plumbing, extra monthly payment, high monthly premium because of low deductible, coverage of jewellery costs more to get. what are the disadvantages of life insurance? - ANSWER fixed periods of coverage, premiums may increase, limited options for people of poor health what are the disadvantages of travel insurance? - ANSWER can be expensive and can sometimes outweigh the cost of your holiday, may not cover everything that you need coverage on. what are the disadvantages of pet insurance? - ANSWER may need to make a claim on your policy and may need to pay for a post mortem if your pet passes away, pre-existing conditions aren't covered, doesn't cover routine vaccinations and other treatments what are the disadvantages of health insurance? - ANSWER can be unaffordable for some, very confusing policies, can apply and be denied coverage altogether, tends not to cover pre-existing conditions. what the advantages of ISAs? - ANSWER tax isn't charged on interest earned allowing the saver to keep all of the rewards for saving, interest rates are sometimes slightly higher than in alternative savings accounts what the advantages of deposit and savings accounts? - ANSWER provides protections, majority of banks and credit unions are insured so the money is secured and safe, easy to setup, simple to withdraw money from a savings account, entitled to 6 withdrawals per month, can open an account with little money what the advantages of premium bonds? - ANSWER no risk of losing money because premium bonds are supported by the government, instant access can withdraw your investment anytime, tax-free returns what the advantages of bonds and gilts? - ANSWER safe investments, interest payments of bonds are sometimes higher than the general level of dividend payments, often liquid, have legal protections what the advantages of shares? - ANSWER don't have to travel or do any physical work, very flexible can work in your own time, less investment what the advantages of pensions? - ANSWER tax won't be paid on your pension contribution, compound interest so the earlier you start the better, guaranteed income at the end, employer contributes each month what the disadvantages of pensions? - ANSWER lack of access can't access your pension finds until you're 55, risk of poor returns as your pension will be invested into stocks and shares, very complicated what the disadvantages of shares? - ANSWER if you buy the wrong shares it could result in a heavy loss, quarterly results can result in a drastic change in the price of shares what the disadvantages of bonds and gilts? - ANSWER not 100% secure, can lose much or all of their money if the company goes bankrupt, same bonds a re callable - so the company can choose to pay the bond off early what the disadvantages of premium bonds? - ANSWER no interest if your bonds aren't chosen in the monthly prize draw you won't receive any returns, low odds very unlikely to win, loses value if you make a withdrawl what the disadvantages of deposit and savings accounts? - ANSWER may be bank fess like account or maintenance fees especially if you maintain low balances, may be required to carry a minimum amount if it falls below the amount the bank may charge fees [Show More]

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