Friday Five Focus on Protection – 15 March – 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 2023/24, examinable by the CII until 31 August 2024.
- What type of policy offers substantial premium discounts to applicant who establish and can evidence high fitness protocols?
- Low-cost endowments.
- Preferred life policies.
- Whole of life policies.
- With profits endowment.
- 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?
- The amount of premiums paid over the term.
- Her age at death.
- The basic sum assured.
- The exact date of death.
- The life fund of a UK insurer is liable for tax on capital gains at which of the following rates?
- 17%.
- 18%.
- 19%.
- 20%.
- Alistair and Andrew both claim the benefits from their critical illness policies. If Alistair is a higher rate taxpayer and Andrew is a basic rate taxpayer, which of the following statements CORRECTLY explains the tax treatment of the payments?
- Neither will be liable for any income or capital gains tax.
- Alistair will be liable for income tax at 20%.
- Both will be liable for capital gains tax, Alistair at 28% and Andrew at 18%.
- Alistair will be liable for income tax at 40%.
- Philip and Gary hold property as tenants in common. On Philip’s death, his share is passed to his sister. In relation to its inheritance tax treatment, it will be
- liable for inheritance tax at 20%.
- exempt from inheritance tax.
- liable for inheritance tax on a reducing scale.
- potentially liable for inheritance tax at 40%.
Answers
- B – See R05 Study Text, Chp 1
Grab our taster mock exam paper for CII R05. Click here to download.
- D – 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 5
Grab our taster mock exam paper for CII R05. Click here to download.
- A – See R05 Study Text, Chp 7
Grab our taster mock exam paper for CII R05 Click here to download.
- D – See R05 Study Text, Chp 5
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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