9. Pensions and other financial products CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

9. Pensions and other financial products

A. Pensions A pension is a 1 sum / quantity of money paid regularly to a person who has reached a certain age or retired. It is usually paid until the 2 receiver's / recipient's death, although in some cases a 3 widow / wife may continue to receive payments after her husband's death. State pensions Pensions paid by the state. In many countries, these are contribution-based: people who have not paid 4 sufficient / satisfactory contributions during their 5 work lives / working lives do not receive the full amount. Occupational pension schemes Pension schemes for employees working in a particular industry or for a particular company. In some cases, these are administered by insurance companies who invest the 6 payments / premiums and use the profits from this to pay out the 7 benefits / rewards. In other cases they are self-administered: the premiums are invested by the pension fund 8 trustees / trusteds. Personal pension schemes Schemes provided by 9 pension givers / pension providers such as insurance companies and banks. The premiums are invested in a 10 pension treasure / pension fund, and on retirement the pensioner receives a 11 lump sum / chunk sum to invest in an annuity (see below). Personal pension schemes are also known as 12 "private pensions" / "alternative pensions". B. Financial products Match the financial product with the benefits. 1 annuity life insurance life assurance endowment assurance endowment mortgage private health insurance sickness insurance equity release scheme a If you're too ill to work, you receive payments. 2 b You pay a lump sum, and receive regular payments for the rest of your life. 3 c You receive a lump sum on a certain date (or earlier if you die). 4 d Your beneficiaries receive money if you die young. 5 e You borrow money to buy a house. Many years later, your endowment repays the loan. 6 f You borrow money. When you die, your house is sold to repay the loan. 7 g Your beneficiaries receive money when you die. 8 h Your private hospital bills are paid. C. Choose the best word to complete the sentence. 1 A person who gives you information about financial products is a __________. A financial advisor B financial helper C financial assistant 2 Some financial advisers only earn money by giving advice. Others earn ________ from selling financial products. A wages B payments C comission 3 An actuary is a person who __________ insurance risk and calculates premiums. A thinks about B assesses C decides 4 When an endowment __________, you receive a lump sum. A finishes B ends C matures 5 Prices go up every year. This is because of __________. A inflation B expansion C evolution 6 Some pension payments increase every year __________ inflation. A in time with B in line with C at the speed of 7 Pension payments which increase in line with inflation are __________. A index connected B index linked C index controlled 8 Many financial analysts predict a __________ caused by too many pensioners and not enough workers. A pensions crisis B pensions disaster C pensions emergency 9 A small additional pension is known as a __________. A topper pension B topping pension C top-up pension 10 Banks and insurance companies are types of __________. A financial institution B finance company C financier 11 Pension funds are usually administered by a __________ of trustees. A group B bunch C board 12 Pension funds, insurance companies and other financial institutions that invest on the stock market are known as __________. A commercial investors B institutional investors C company investors 13 Individual people who invest on the stock market are known as __________. A private investors B personal investors C one-man investors 14 In most countries, financial products and services are __________ by the government. A watched B decided C regulated

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