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Chapter 12: Invest

Unit 1

QuestionAnswer
Assurance long term cover or life insurance against an event that will definitely occur, eg. death and life insurance
Insurance short term cover or insurance against an event that might occur e.g. theft, lost ability to work and cover for natural disasters
Non-compulsory insurance This is optional. This is set up by individual to transfer risk of something happening onto insurance company.
Compulsory insurance Any form of insurance which is required by law. It is set up by the government against the consequences of serious risk such as -loss of employment , accident while work, accident or injury while driving and harm to another driver
Compulsory assurance This is when it is required for a person to use some of they money from pension fund when they are retired to secure monthly income for a month.
Non-compulsory assurance This is optional. This is a contract that makes sure that money is paid just in case of death or retirement.
Created by: Mindurbus
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