Friday Five Focus on Protection – 24 February – 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.

1. In which of the following circumstances might an income protection policy provider pay a commuted lump sum to the insured rather than continue paying the benefits on a regular basis?
   1. It is not expected that the client will recover from their incapacity
   2. The client has a life expectancy of less than 6 months
   3. If the insured recovered from a condition initially expected to be terminal
   4. Where the insured is aged over 55 at the time of the first claim

2. A client who is in poor health and already needs care will most likely benefit from which of the following policies?
   1. Immediate needs plan
   2. Pre funded policies
   3. Deferred care plan
   4. Traditional insurances

3. A group accident, sickness and unemployment policy have 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. David has a life assurance policy with a UK life office. At which of the following rates will the life fund be taxed on any UK dividend income it receives?
   1. Nil
   2. 7.5%
   3. 32.5%
   4. 38.1%

5. Pauline is returning to a different employment after a period of illness when she was claiming benefits from her income protection policy. If this results in her receiving a lower level of pay, which benefit may her policy pay to her?
   1. A lump sum payment
   2. A proportionate benefit in relation to her new earnings
   3. A rehabilitation benefit in relation to her new earnings
   4. The same level of benefit for a maximum of 2 years

Answers

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

2. A – See R05 Study Text, Chp 8
   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. A – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05 Click here to download.

5. B – See R05 Study Text, Chp 6
   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.