Friday Five Focus on Protection – 24 May – 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 2023/24, examinable by the CII until 31 August 2024. They do not relate to tax year 2024/25 which is only examinable by the CII from 1 September 2024.

1. Which of the following policies offer a lump sum or income benefits if the insured suffers an accident or is unable to work due to redundancy?
   1. Private Medical Insurance.
   2. Health Cash Plans.
   3. Accident, sickness, and unemployment.
   4. Long term care insurance.

2. How is the cover provided under a whole of life policy affected if premiums cease at a pre-set age?
   1. It remains in force for a maximum period of 10 years.
   2. It reduces to 50% when premiums cease.
   3. It reduces by a stated percentage in each future year.
   4. It is not affected – the cover continues until death.

3. The usual limitation on the amount of benefit that can be paid from an individual income protection policy is that the total of all policies does NOT exceed
   1. 50% of monthly gross earnings in the two years prior to incapacity.
   2. 50% – 60% of average monthly gross earnings in the year prior to incapacity.
   3. 75% – 80% of average monthly gross earnings in the year prior to incapacity.
   4. 50% – 65% of monthly gross earnings in the six months prior to incapacity.

4. Georgia wants to set up a Lasting Power of Attorney for her daughter. If she did NOT do this and became mentally incapable, who would be responsible for handling her affairs?
   1. Her solicitor.
   2. A Deputy appointed by the Court of Protection.
   3. Her family.
   4. A Guardian employed by the Department of Social Security.

5. Anne wants an income protection policy which includes an element of protection against inflation. Which of the following options may be available?
   1. An amount of increase chosen by the insurer every five years.
   2. A rise in benefits selected by her every year.
   3. An automatic increase at stated periods without further underwriting.
   4. An automatic elevation of benefits based on the occurrence of stated life events.

Answers

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

5. C – 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.