Friday Five Focus on Protection – 11 November – 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.

1. Peter a self-employed plumber has taken out a loan of £40,000 to buy new equipment for his business. Why might he want any associated insurance policy to repay it on his death to have a sum assured greater than the amount of the loan?
   1. To ensure that it keeps pace with inflation
   2. To take account of changes in interest rates affecting the amount to be repaid
   3. There may be early redemption penalties involved
   4. To provide funds for his dependants

2. In relation to the State pension credit, an individual reaching State pension age on or after 6 April 2016 may normally be entitled to
   1. the guarantee credit only
   2. the savings credit only
   3. both the guarantee and the savings credit
   4. neither the guarantee nor the savings credit

3. Which of the following methods of collecting underwriting evidence for protection policies is the fastest and can result in less non-disclosure?
   1. Medical examination
   2. Tele-underwriting
   3. GP report
   4. Health screening

4. Which of the following is a form of decreasing term assurance?
   1. Convertible term assurance
   2. Flexible whole of life
   3. Maximum investment plan
   4. Family income benefit

5. Evelyn has just taken out a new mortgage and is interested in taking out mortgage payment protection insurance. For how long must the lender wait before they can set this up?
   1. 3 days
   2. 7 days
   3. 14 days
   4. 21 days

Answers

1. C – See R05 Study Text, Chp 11
   Grab our taster mock exam paper for CII R05. Click here to download.

2. A – See R05 Study Text, Chp 3
   Grab our taster mock exam paper for CII R05. Click here to download.

3. B – See R05 Study Text, Chp 4
   Grab our taster mock exam paper for CII R05. Click here to download.

4. D – See R05 Study Text, Chp 4
   Grab our taster mock exam paper for CII R05 Click here to download.

5. B – See R05 Study Text, Chp 9
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.