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People need financial products that allow them to save over a long period - over 3 years When people borrow money to finance a large purchase, they need to pay it back over a long period, otherwise they can't afford it They do this so they can put money away to cover future needs and wants and to allow them to fulfil their aspirations Medium + long term savings The best e.g. is a mortgage, which is a loan secured on the value of the property being purchased Longer-term borrowing Banks and certain other providers offer longer-term savings accounts where customers can build up the lump sum needed To satisfy their needs, wants and aspirations, people have to be able to finance them Hire purchase is a type of secured consumer credit to finance items such as cars and furniture, which also involves the borrower repaying over a number of years People invest to save for a longer-term want or aspiration - It's different from a long-term savings products because it's more risky but it can bring any higher return 1.3 - SATISFYING NEEDS, WANTS, Insurance companies + banks provide insurance policies that cover long-term risks Investments ...
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