Friday Five Focus on Protection – 18 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 2022/23, examinable by the CII until 31 August 2023. They do not relate to tax year 2023/24 which is only examinable by the CII from 1 September 2023.

1. Marie has an onshore life assurance policy and Claire has an offshore life assurance policy. The difference in the tax treatment of their funds is
   1. Marie’s fund will be taxed at roughly the basic rate of income tax, while Claire’s fund will have gross roll-up
   2. Marie’s fund will be taxed, but the tax is reclaimable while Claire’s fund will have a gross roll-up
   3. Claire’s fund will be taxed at roughly the basic rate of income tax, while Marie’s fund will benefit from gross roll-up
   4. Marie’s fund will be taxed, and the tax is non-reclaimable, while Claire’s fund will be taxed but the tax is reclaimable

2. Where a combined life assurance and critical illness policy allows for buy back of the sum assured on death after the payment of benefits on a critical illness claim, this is typically allowed after what period of time has passed?
   1. Two years from the date of the critical illness claim
   2. 18 months from the date of diagnosis of the critical illness
   3. One year from the payment of the critical illness benefit
   4. Six months from the end of any treatment for the diagnosed critical illness

3. Which of the following statements is TRUE in relation to most private medical insurance policies? The policies
   1. are designed to cover chronic conditions
   2. do not allow the insured a choice of hospital in which to receive treatment
   3. are restricted to UK residents and do not provide cover for treatment abroad
   4. provide benefits for a maximum of 5 treatments over the term of the policy

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. What form of benefit will Harry receive if he makes a claim on his care cash plan?
   1. A cash lump sum and income for a set period
   2. cash lump sum and/or income until he dies
   3. A cash lump sum and/or income for a set period
   4. A cash lump sum and income until he dies

Answers

1. A – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05. Click here to download.

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

3. C – 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. C – See R05 Study Text, Chp 8
   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.