financial-product

Vocabulary Word

Definition

A 'financial product' is a contract, an agreement between two parties on financial matters. It includes banking products (like savings accounts), investments, insurance policies, loans, and stocks.

Examples in Different Contexts

In insurance, 'financial products' include policies like life insurance or homeowner's insurance that provide financial protection. An insurance agent might state, 'Our life insurance product is tailored to provide financial security for your family in case of unforeseen events.'

Practice Scenarios

Insurance

Scenario:

Is there a way for us to provide more value to our customers? Perhaps through tailored insurance facilities or flexible policies.

Response:

A customized insurance policy might be attractive as a new financial product. It could allow clients to select components relevant to them.

Finance

Scenario:

Our bank is committed to finding innovative solutions for our customers. Do you think launching a new offering could help boost growth?

Response:

Launch of a new financial product might be a great way to help our account holders increase their returns.