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

1. To qualify for a full new State pension an individual must have a total of how many years’ National Insurance contributions or credits? 
   1. 26
   2. 30 
   3. 35 
   4. 39

2. Jack, who is married to Vera, has an endowment policy approaching maturity. The life office’s form of discharge can be signed by:
   1. Jack or his solicitor
   2. Jack or Vera 
   3. Jack or anyone appointed by him 
   4. Jack only

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. Where a business is considering putting in place key person insurance, they could do this in the form of:
   1. life assurance or critical illness only 
   2. life assurance, critical illness, or income protection 
   3. critical illness or income protection only
   4. life assurance or income protection only

5. Tracy and Glen are married with 2 children aged 6 and 4 and want a critical illness policy with life cover.  Which type of trust should they use? 
   1. Split benefit trust
   2. Discretionary trust 
   3. Absolute trust 
   4. Flexible trust

Answers

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

2. D – See R05 Study Text, Chp 4
   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. B – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05 Click here to download.

5. A – See R05 Study Text, Chp 7
   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.