Friday Five Focus on Protection – 5 Questions in 5 Minutes – 30 Aug 2024

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. 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. Alan has made a gain of £6,000 on his non-qualifying life assurance policy. This gain could be liable for
   1. higher and additional rates of income tax only.
   2. capital gains tax.
   3. income tax at Alan’s appropriate rates.
   4. income tax at Alan’s appropriate rates and capital gains tax.

3. Daniel’s company provides income protection for him, and they pay the premiums. For how long will the benefits usually be paid if he becomes ill?
   1. A maximum period of 2 years.
   2. To the earliest of his recovery, leaving service or normal retirement date.
   3. For a period chosen by the company.
   4. For a period of between 2 and 6 years depending on the nature of Daniel’s incapacity.

4. It is most likely that the benefits provided from a personal accident and sickness policy would be linked to salary rather than fixed sums when the policy is
   1. provided as a group scheme by an employer.
   2. a short-term policy.
   3. offering a weekly sickness benefit.
   4. taken out as a standalone contract.

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

4. A – See R05 Study Text, Chp 9
   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?

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