Managing my money
Managing my money

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Managing my money

8.1.3 Mick sorts out his insurance

This quiz tests your ability to apply the financial planning model to insurance.

Activity 1

Which two of the following would Mick do in Stage 1 of the financial planning model (‘assess the situation’) when sorting out his insurance?

a. 

Go to insurer’s website to complete application form and pay the £75 premium


b. 

Add up the value of all his possessions


c. 

Go to several comparison websites to check cover, prices and exclusions


d. 

Check his budget and savings to see what he can afford to pay


The correct answers are b and d.

Which one of the following would Mick do in Stage 2 of the financial planning model (‘decide on financial plan’) when sorting out his insurance?

a. 

Go to several comparison websites to check cover, prices and exclusions


b. 

Add up the value of all his possessions


c. 

Go to insurer’s website to complete application form and pay the £75 premium


d. 

Check if the policy covers the TV and games system he subsequently buys


The correct answer is a.

Which two of the following would Mick do in Stage 3 of the financial planning model (‘act on financial plan’) when sorting out his insurance?

a. 

Go to the selected comparison website to choose an insurer


b. 

Check if the policy covers the TV and games system he subsequently buys


c. 

Check his budget and savings to see what he can afford to pay


d. 

Go to insurer’s website to complete application form and pay the £75 premium


The correct answers are a and d.

Which two of the following would Mick do in Stage 4 of the financial planning model (‘review the outcome’) when sorting out his insurance?

a. 

Add up the value of all his possessions


b. 

Go to insurer’s website to complete application form and pay the £75 premium


c. 

Compare the selected renewal premium with other providers’ offers


d. 

Check if the policy covers the TV and games system he subsequently buys


The correct answers are c and d.

MMM_1

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