Please enable JavaScript.

Coggle requires JavaScript to display documents.

UNIT 2 - Coggle Diagram

- - - - sum assured is payable on the death of the life assured, whenever that death occurs
    - - the sum assured is payable only if the person assured dies before the end of a specified term
    - - Location
      - Health Conditions
      - Smoking Yes/No
      - Mortgage size
      - age
      - where you live
      - Job/Retiered
      - Bills
      - Gender
      - Lifestyles
      - Type of cover
      - Length of cover
- - - - unsecured - credit cards, loans
- - - - The financial provider uses your money to invest into start up company's - earn you a reward for investing
      - can split up to £20,000 into stocks and shares or a cash ISA
      - tax-efficient investments
    - - available for those under 18
      - a child can access it once they are 18
- - - - It covers loss of earnings due to accident, sickness or involuntary unemployment during the period of the loan
  - - - traditionally these were young people in the early stages of their working lives and on relatively low income
  - - - The client then pays back rent to the provider - the provider then makes a profit without it being deemed as interest
      - Tends to be more expensive
      - the provider purchases the clients chosen property and they sell it at the same price
      - Set amount for 12 months
      - The lease to own method
      - up to 25 years to pay it back
    - - Up to 15 years
      - sold to the client at a higher price
      - first payment is 20%
      - the house is in the clients name
      - Right to buy doesn't qualify
      - charging a higher price is where the bank make a profit
  - - - pay an employee a pension based on the number of years they have worked for the employer and linked to the amount of their salary at the time they retire
    - - A personal pension is also a type of investment fund. It is a long-term savings plan that is tax-efficient and is purchased by an individual throughout their working life
    - - a regular payment made by the government to people when they reach state pension age and as long as they have paid or been credited with sufficient National Insurance contributions.
    - - where the employee pays into the pension plan over their working life – the scheme is invested and provides the employee with the resulting lump sum on retirement
  - - - tuition fee loan is granted to the student to enable them to pay the tuition fees of their course
      - loan is paid in three instalments: 25% at the beginning of Terms 1 and 2 and 50% at the beginning of Term 3.
    - - This loan covers the living expenses incurred by students on full-time courses
      - The maximum amount of maintenance loan to which a student is entitled depends on where they live, the year of their course and entitlement to other financial support such as bursaries
    - - A student does not start repaying their loan until they have left university and their income exceeds the minimum threshold.
- - - - Higher interest
      - Higher repayment period
      - Higher total at the end
      - Monthly payments increase
      - May lead to assets being repossessed to cover the debt
      - Affects your credit score - struggle to get future loans, mortgages, credit cards etc
    - - Have to work past retirement age
      - Can't retire at retirement age of 67 in the U.K.
  - - - realstic
      - clear
      - timely
      - flexible
      - documented
    - - budgets
      - cash flow forecast
      - monitoring and control
- - - - alcohol
      - gaming
      - adult entertainment
      - weapons
- - - - A consumer can easily look round at many and compare Its free for consumers
      - Will only have basic information and this could be outdated
    - - Lets a consumer see all different products and manage their products online
      - Easily updated
      - Includes all terms and conditions
      - Can be confusing - overload of information
    - - Directly talking to you, information based on your finances, a more personal approach
      - Can be time consuming for some
      - Completely partial to the provider
  - - - Cover a range of different providers and their products, warns against scams and problems with providers
      - Some providers may pay the newspapers and tv shows to make them look better than other providers.
      - Sometimes partial
    - - Directly makes comparisons for someone to easily access - less likely to be impartial
      - Unlikely to be partial
      - Still have to spend time researching alongside the price comparison websites
      - Consumers can access an at-a-glance list of products from different providers and this helps them to make a choice
      - consumers can get information on a number of providers without contacting each separately and this saves time
      - Consumers can find ‘best buy’ tables
      - Consumers can enter their own specifications and find products that suit their needs
  - - - A money or financial health check looks at a person’s overall financial position in relation to their circumstances and aims to anticipate future events. Financial needs change over time
      - Their attitudes to managing money;
      - age, marital status, work situation of themselves and their partner;
      - whether they own their home and whether they have a mortgage;
      - any people who depend financially on them and on whom they depend;
      - how far their money stretches;
      - how far they rely on borrowing;
      - whether they have accessible savings;
      - how they could cope with an unexpected cost they could not pay for themselves
      - how they could cope if they had less money or if their costs rose;
      - how they or their partner might cope if the other died and whether they have made wills
      - when they expect to retire and how they will manage;
      - whether they have any savings or investments and whether they are saving at the moment
    - - promoting awareness of scams;
      - improving customer service and choice for prepay energy customers;
      - fair treatment for people using payday loans;
      - changing the law so customers can choose to cap their mobile phone bills;
      - a ban on letting agent fees for tenants
      - Citizens Advice is a registered charity and is the membership organisation for the Citizens Advice Bureaux, which deliver advice services from more than 2,500 community locations in England and Wales and are run by 280 individual charities
    - - StepChange sets out three steps to a debt-free future:
      - Decide to get debt help.
      - Access debt advice via its anonymous online Debt Remedy tool, or call the telephone debt helpline and speak to an expert adviser.
      - Use the practical solution that works for them.