Friday Five Focus on Protection – 13 August – 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 2020/21, examinable by the CII until 31 August 2021. They do not relate to tax year 2021/22 which is only examinable by the CII from 1 September 2021.

1. Caroline held an own life with-profits life assurance policy. On her death, the amount payable on the claim may vary depending on which of the following factors?
   1. The amount of premiums paid over the term
   2. Her age at death
   3. The basic sum assured
   4. The exact date of death

2. Although no set survival period is specified in the ABI best practice, which of the following reflects the typical range of survival periods for critical illness cover on the market?
   1. 7 – 14 days
   2. 10 – 14 days
   3. 14 – 21 days
   4. 14 – 30 days

3. A group accident, sickness and unemployment policy has which advantage over an individual policy?
   1. Unrestricted cover for accidents
   2. Enhanced benefit amounts
   3. No deferred periods
   4. Preferential premiums and underwriting

4. Elaine, aged 28 and single, made a claim for employment support allowance (ESA), and has been placed in the work-related activity group. This means that she will have:
   1. a higher level of benefit than those in the support group
   2. benefits paid for a maximum of 14 weeks
   3. been attending mandatory work-focused interviews from week 8 of her claim
   4. a work capability assessment every 4 weeks

5. Where an employer sets up group critical illness cover for their employees and pays the premiums, how will this be treated in relation to taxation when the benefits are paid directly to an employee?
   1. The premiums are taxed on the employee at 10%
   2. The benefits are liable to income tax at the employee’s rate
   3. The benefits are a taxable benefit in kind
   4. The premiums are a taxable benefit in kind

Answers

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

2. D – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

3. D – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

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

5. D – See R05 Study Text, Chp 7
   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.