Friday Five Focus on Protection – 16 December – 5 Questions in 5 Minutes
Friday Five Focus on Protection – 5 Questions in 5 Minutes Every Friday
What’s this all about?
Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Protection; this is useful as you prepare for the CII’s R05 exam. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
Questions
IMPORTANT! These questions relate to examinable tax year 2022/23, examinable by the CII until 31 August 2023.
- Which of the following policies offer a lump sum or income benefits if the insured suffers an accident or is unable to work due to redundancy?
- Private Medical Insurance
- Health Cash Plans
- Accident, sickness and unemployment
- Long term care insurance
- Carla is placing a life assurance policy into trust. Which of the following statements is correct in relation to her selection of trustees? The trustees
- will ideally be older than Carla
- should have an understanding of her wishes
- cannot include Carla
- must be related to Carla
- Christopher, a doctor, has taken out an income protection policy to insure against the costs of employing a locum if he is ill, therefore the premiums qualified as a deductible business expense. The benefits he receives on a claim will be paid
- gross and free of any liability for income tax
- gross but taxable as a business receipt
- net of basic rate income tax
- net of corporation tax
- George has a term assurance policy that includes terminal illness benefit. If he makes a claim, it will be paid if the life office decides that his life expectancy is less than
- 6 months
- 20 months
- 12 months
- 9 months
- The Free Asset Ratio (FAR) of a life office gives an indication of
- annual new business
- future profit
- pay claim history
- financial strength
Answers
- C – See R05 Study Text, Chp 2
Grab our taster mock exam paper for CII R05. Click here to download.
- B – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05. Click here to download.
- B – See R05 Study Text, Chp 6
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05 Click here to download.
- D – See R05 Study Text, Chp 10
Grab our taster mock exam paper for CII R05. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
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