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.

Mat the financial product with the benefits.

1   annuity

a.   If you’re too ill to work, you receive payments.

2   life insurance

b.   You pay a lump sum, and receive regular payments for the rest of your life.

3   life assurance

c.   You receive a lump sum on a certain date (or earlier if you die).

4   endowment assurance

d.   Your beneficiaries receive money if you die young.

5   endowment mortgage

e.   You borrow money to buy a house. Many years later, your endowment repays the loan.

6   private health insurance

f.   You borrow money. When you die, your house is sold to repay the loan.

7   sickness insurance

g.   Your beneficiaries receive money when you die.

8   equity release scheme

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 adviser       

        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   commission

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

Answers

A: 1 sum, 2 recipient’s, 3 widow, 4 sufficient, 5 working lives, 6 premiums, 7 benefits, 8 trustees, 9 pension providers, 10 pension fund, 11 lump sum, 12 private pension

B: 1 b, 2 d, 3 g, 4 c, 5 e, 6 h, 7 a, 8 f

C: 1 a, 2 c, 3 b, 4 c, 5a, 6 b, 7 b, 8 a, 9 c, 10 a, 11 c, 12 b, 13 a, 14 c

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