unit 20 p3 level 2 business

1213 Words5 Pages
Describe financial products and services appropriate to self.
Although there are many types of financial product, there are a few features that are common to several of them.
Borrowing- several products enable customers to borrow money these include loans from banks and finance companies, overdrafts, credit cards and mortgages. All loans have specific requirements such as interest to be paid and a timescale to repay the amount borrowed.
Saving/ investing – this is where money is deposited in an account and is available for later withdrawal. Normally interest is paid
Risk – some type of savings, such as company shares, involve the risk that some or even all of the money invested could be lost.

Current accounts:
…show more content…
This means that after this period you will have to pay your monthly mortgage repayments yourself.
Credit and store cards – it generally pays off a percentage of your outstanding balance or the minimum payment each month for up to a year. Check which option is being offered. This means that you may still have to pay any balance left after this time. The insurance typically only provides cover for the amount you owe when you make a claim, and not any balance you build up after this.
Loans – it covers your monthly repayments for the loan, generally for 12 or 24 months. After this period you will have to pay your monthly loan repayments yourself.
If the insurance for any of these products contains life insurance, then the cover will generally pay off the balance of the debt covered if you die. If the claim is for disability, the monthly repayments may be paid to the end of the life of the loan.
You should read the key policy information that comes with any policy you take out. This sets out, amongst other things, the main features and benefits of the policy as well as any significant or unusual exclusions and how long the cover lasts. If unclear ask the salesperson to go through it with you and make sure you 're happy before you take it out.

Life assurance:
There is an important difference between life insurance and life assurance. In the case of life insurance, in return for a premium the insurer will pay an agreed amount if the insured person dies within

More about unit 20 p3 level 2 business

Get Access