Friday Five Focus on Protection – 23 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 2020/21, examinable by the CII until 31 August 2021.

1. Who of the following would be eligible for Statutory Sick Pay?
   1. Philip, employed part-time and not paying any National Insurance contributions
   2. Steven, self-employed and paying Class 2 and Class 4 National Insurance contributions
   3. Brenda, currently on a career break and paying Class 3 National Insurance contributions
   4. Miriam, employed and paying Class 1 National Insurance contributions

2. John is paying regular monthly premiums on a life assurance policy to protect a potential inheritance tax liability. Which of the following exemptions from inheritance tax could he claim against the annual premiums totalling £3,200?
   1. The annual exemption and/or the normal expenditure out of income
   2. The annual exemption only
   3. The small gifts exemption
   4. The life assurance premium exemption

3. Maureen who is currently on a sabbatical from work wants an income protection policy. Which of the following is the maximum amount of benefit likely to be available?
   1. £1,000 per month
   2. £100,000 over the lifetime of the policy
   3. £15,000 per year
   4. £250 per month

4. George has a term assurance policy that includes terminal illness benefit. If he makes a claim, it will be paid if the life office decides that his life expectancy is less than:
   1. 6 months.
   2. 18 months.
   3. 12 months.
   4. 9 months.

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

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

3. C – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

4. C – 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.