Insurance

UK InsuranceTypes of Insurance Benefits And Their Uses

Insurance is perhaps described in area where two parties are engaged in kind of business transaction where one person purchases policies to help cover possible cases of loss and make duly payments on monthly or yearly basis, the outcome will define the preparedness of that particular person towards any kind of risk and the measures, he or she has taken to combat them.

Definition

In general terms, insurance can be defined as a type of risk management strategy where possible risk of loss is transferred to another entity. The person to whom insurance is purchased from is referred as the insurer while the insured is the person that has just purchased this risk management strategy. The insured purchases what we call premiums depending on the type of risk management strategy purchased and in this case, the risk management strategy is the insurance.

Types of UK Insurance

Parties in an insurance contract

There are two parties involved in an insurance contract, and these are the insurer and the insured. The insurer can be the company that sells insurances in forms of premiums to an esteemed purchaser who in this case is the insured. The amount the insurer would be receiving from the insured will encompass various possibilities such as type of insurance purchased, the time involved as well as the entity. For instance, life insurance and car insurance is two different insurance policies that cover different entities, carrying different time as well as the amount to be charged in either.

Types of insurance policies

There are many types of insurance policies and most of them are introduced over time depending on the possible risk that needs to be averted.

The most common type of insurance is the auto insurance, which covers possible losses against financial constrains that may be subject to the policyholder’s vehicle involving in any kind of incident like a traffic accident and the coverage ranges from covering property in terms of theft, as well as possible damage. There is also liability that tends to cover incidents where the vehicle may injure someone or property of another as well as encompassing costs that range from treatment, funeral and wages as well as rehabilitation. While in some countries like the UK the driver or vehicle owner is required to buy most of those covers, in other countries, the driver may have to choose randomly.

Another type of insurance is gap insurance, which tends to cover insurance loans that haven’t been addressed by the normal insurance cover in auto insurance. Note that gap insurance can be accessed from the finance company.

Home insurance covers possible destruction of the policyholder’s home. Depending on the geographical setting of the home, the risk may include some of the risks and exclude others; however, common possible risks covered include floods and earthquakes in most parts of the world. Seldom home maintenance doesn’t fall under home insurance policy.

Health insurance is another common type of insurance that is very important to the policyholder. This is because they cover possible risks of paying a high bill in the hospital. This insurance policy is also important during emergencies.

Other insurances include accident, disability, casualty, crime and political risk as well as life insurance for monetary benefits.


Forex

UK ForexWhat Is Forex?

The foreign exchange market which is also known as Forex is the global trading where international markets are involved. The purpose of Forex is to help in determining the performance of different currencies and the exchange rate that effect either towards access by different buyers or sellers.

All financial centres from around the globe contribute positively on the meaning and application of Forex. The foreign exchange market, which we have associated with Forex, has the responsibility of helping in currency conversion. Generally, Forex plays a vital role in world economies, business and other forms of exchange platforms that make buying and selling something more than just an exchange of goods or services for cash.

The history of Forex market in the modern world

It is believed that the current Forex, or rather foreign exchange business all over the world took course back in the 1970s. Although this trend has fairly crossed to other countries and is happening almost in the entire world, the first of its kind can be traced back in the US in 1970s when the issuance of foreign exchange and transactions was lifted to pave way for the trend that was later to define Forex on bigger terms.

UK Forex Brokers

What makes Forex unique?

There are various factors that encompass the uniqueness of the Forex to the common man, and these include factors such as liquidity whereby as a trading platform, this is, in fact, the biggest asset in the modern world for trading. Another factor that affects its use and also defines its diversity is based on the geographical diversification and dispersion from one country and today can be found almost in every corner of the world. In spite of the weekends when the trend may not be practiced, Forex can be done anytime of the day from Monday to Friday.

Why Forex has grown so popular

Over the past few years, since its debut to the world market, Forex trading has gained a lot of popularity, and all people are giving it a try in their investment options. This is especially a possibility when the outcome is based on increasing large sums of money within a very short period of time. Another reason that makes Forex quite popular as an investment is based on the capital needed to start. While in other forms of investment schemes, the investor may be required to have the substantial amount of capital, with Forex, all that’s needed is enough cash to start off. Note that the fact that markets are kept open for whole twenty four hours, five days a week is also another reason that makes Forex trading go an extra mile towards increase in popularity.

Forex strategies

Although there is a high chance that any trader, whether intermediate, advanced or a beginner, might make good returns, those people that perform extremely well in the Forex have used various strategies that can be acquired through consultation, and garnering enough confidence before starting. Evidently, the best way to become an expert is through research and using the right channels. Don’t forget that risk takers always turn out as victors in the process.


Credit Cards

UK Credit CardsWhat Are The Uses Of Credit Cards?

Credit cards are methods of payment conducted by electronic data enabled cards. Credit cards work by allowing the anticipated cardholders to clear payments on goods or services according to the set agreement with the seller, and the buyer, who in this case is the credit card holder.

Credit cards can be subject to investigations when misused, or when infringement of security has been brought into question. However, credit cards are issued with the safety of the credit card holder’s personal information into the picture. These days it is quite hard to steal a credit card that doesn’t belong to you and make payment from it as security on the same has been enhanced.

Credit cards verses charge cards

It should be noted that credit cards and charge cards are two different forms of payment systems, although the two undertake similar responsibilities towards clearing payments. However, when it comes to a charge card, the card holder has the responsibility to ensure that full payment of balances has been undertaken every month and thus there are no arrears on the card, but when it comes to credit cards, a certain percentage must be paid in full according to the agreement set by the card holder and the issuer. Credit cards also make the card holder to be a victim of increased interest rates when the balance is not paid in full at the end of each month.

Top UK Credit Cards

Credit cards verses cash cards

Cash cards can easily be used to replace the need for currency and thus if what the holder needs to do is to get some solid money and use it for other purposes, then the cash card would better apply than a credit card that only applies when goods or services have been purchased. Credit cards do not allow you to access cash and hence if there was a need to lend someone money, a credit card may not come to your aid.

How do credit cards work?

Credit unions or banks have a responsibility of issuing credit cards to anticipating credit card holders. Credit cards allow people to make purchases and pay for services, and the amount is charged on the card. Later in the month, the credit card holder will have a responsibility of clearing those arrears on the credit card. If you are unable to clear your balances in full for several months thus leading to accumulation of high interests, you can be associated with people who may have bad credits. However, if you can clear payments in full every month, then you can be associated with people who may be said to have excellent credits.

Electronic verification is primary when using credit cards. Notice that the customer must have enough funds in accordance to the report presented on the account of using this technique to verify the capacity of the holder to clear payment of goods and services in full.

When using credit cards, the merchant also has to verify that the anticipated card is in possession of the actual holder and thus not in violation.


Bank Accounts

Piggy BankOpening New Bank Accounts

Bank accounts have a responsibility of recording and submitting the positively recorded data for viewing anytime without question, and this can be presented as a financial statement or even as a reference that confirms the agreement between the account holder, the investor, and the bank.

Bank accounts can take different kinds of definitions depending on the topic study. However, when an investor, makes a written agreement between a bank, financial institution that stores different kinds of investments for security reasons and future use, the results can be associated with the terms bank account.

What defines bank accounts?

To open a new bank account, an individual needs to put two things into consideration, and that is the bank to register the account with and the next thing is to consider the type of account to open. A bank account can either be dependence on two features, and this includes credit or debit. When an account is in debt, it means that the account holder owes the bank, while when it is in credit; it means that the bank owes the account holder. Notably, bank accounts are established with various reasons in place such as the need to secure savings, make necessary transactions as well as hold credits in forms of balances.

Top UK Retail Banks

Types of bank accounts

Bank accounts are opened by various investors due to various reasons, however, whatever reason an investor may have when opening a bank account, in order to substantiate the bank to sign up the agreement with as well as open the anticipated account, it is necessary to determine the type of account needed. Although there are many of those, typical examples of bank accounts include savings accounts, loan accounts, current accounts, personal accounts as well as money market accounts among others. Fixed accounts are also quite popular these days.

Choosing the right bank account

Once the person opening a bank account establishes the kind of agreement he or she wishes to sign with the bank, deciding on a particular bank account can be met by different challenges, especially when all of the above mentioned bank accounts are brought into the picture. A current account, for instance, which allows the account holder to deposit and withdraw money whenever they want to, has its own merits and demerits, and thus it is the duty of the account holder to identify those merits and demerits before approaching the bank to start filling those documents.

Factors affecting the opening of new bank accounts

Whenever the need to open a new bank account comes in place, it is the duty of the account holder to define the necessity of the bank account clearly depending on the anticipated purpose. Evidently, if the idea is to deposit funds that don’t need to be used within the next few months, then opening a fixed current account can be a better choice. Some of the factors that affect choice making when opening new bank accounts are related to the amount to save as well as the minimum amount that the account can hold and bank will direct the account holder on the right path.