Friday Five Focus on Protection – 22 October – 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 2021/22, examinable by the CII until 31 August 2022.

1. Who has to prove that a CIC claim is payable?
   1. The life office
   2. The policyholder
   3. The policyholder or their spouse
   4. The personal representatives of the policyholder

2. James makes a lifetime gift into a trust which isn’t an absolute/bare or disabled trust. How much tax is due immediately? Assume no annual exemptions are available.
   1. 20% on the amount gifted into trust
   2. 20% on the amount gifted into trust that exceeds the available nil rate band
   3. 40% on the amount gifted into trust that exceeds the available nil rate band
   4. 40% on the amount gifted into trust

3. Which of the following reasons CORRECTLY explains why protection against an inheritance tax liability may be beneficial?
   1. Estates over the value of the nil rate band are charged on an increasing scale
   2. Unused allowances of spouses are lost
   3. Executors are liable for paying any IHT before the estate is distributed
   4. Transfers between spouses are only exempt up to the value of the nil rate band

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. Private medical insurance is primarily aimed at which of the following conditions:
   1. Acute
   2. Infectious
   3. Chronic
   4. Life-threatening

Answers

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

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

3. C – See R05 Study Text, Chp 2
   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. A – 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.