Essay
Financial Services for Individuals P3 UNIT 1
- Institution
- PEARSON (PEARSON)
Explain three other financial services appropriate to meet the needs of two contrasting customers
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I will be explain three other financial services appropriate to the needs of two contrasting customerswhich will be a young single professional in early years of their career and an elderly couple who are
about to retire from work.
As the young single professional just began work, they may not have adjusted to the life of working
constantly and they may want to go on holiday for a break. This is why travel insurance will benefit them
as it protects them while they are holiday such as injuries and loss of luggage, they will not have to pay
additional as health is other countries are expensive. Also some banks do cover medical expenses such
as any medicine needed. Cover for loss of luggage could be from £250-£5000.Also the young single as
they are working they may not have to switch banks to get travel insurance in case their bank does not
cover it , which is why most banks do not need one to bank with them before they can apply for travel
insurance. There is also cover for sports if they want to do sports while on holiday as they are still they
may want to do this.
As the young professional just started their career they are going to want to enjoy their money and not
want to spend a lot on the deposit for the flat they want which is why banks only offer them the chance
to pay 5-25% of the price of the home which means the young professional does not have to save for
long as they do not the whole cost of the house. Also banks will offer them a loan of up to £5000 or
more which they can use to design the house to their own comfort. Banks will help pay any legal fees
concerning the house and the young professional will save money. As the young professional earns
£20,000 they will be able to pay the mortgage monthly. As the flat they want is £150,000 the wouldn’t
have to save for long as most banks only want 5% they will need to pay £7,500 and after that they can
spend their money on what they want as the banks will offer loans for they need.
Young professionals may not often have cash on them as they are very busy; it’s very likely they can lose
that cash which is why they can have a debit card given to them when they open a current account. They
will be able to use this card in all stores with a card machine. Also banks offer contactless which means
they do not need to type in their pin, they just tap it on the card machine if it there. They will also be
able to manage their funds as they are able to view their information on online banking which can be
seen on their phone which is mostly with a young professional. Also with a current account, they can use
apple or android pay which is when you tap your phone on the card machine to pay and this is good for
the young professional especially if they are in a rush and need to get to work. The debit card can also be
used abroad which is good as young professionals enjoy going holiday when they have a break for their
job. The young professional can also withdraw up to £300 a day from the cash machine and the debit
card can be used for online transactions too which benefits the young professional because as they just
started work they will want to spend their earnings and interest can be earned on current accounts to of
up to 25%.
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