Friday Five Focus on Protection – 5 Questions in 5 Minutes – 9 Oct 2026

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 2026/27, examinable by the CII until 31 August 2027.

1. Karina has a combined life assurance and critical illness policy. What will happen to the sum assured on death if she makes a claim on the diagnosis of a critical illness? It will
   1. continue at the original amount for a maximum of five years.
   2. continue at half the original amount.
   3. only continue to exist if Karina survives for a minimum of two years.
   4. not exist as if there is a CIC payout, there is no further payment on death.

2. Graeme has set up an accident, sickness and unemployment insurance policy. What is the correct tax treatment of his premiums and benefits?
   1. Tax relief is available on the premiums, but the benefits are taxable.
   2. There is no tax relief on the premiums, and the benefits are tax free.
   3. There is no tax relief on the premiums, and the benefits are taxable.
   4. Tax relief is available on the premiums, and the benefits are tax free.

3. Where policies are written on a life of another basis in relation to share protection insurance, the main advantage is that
   1. policies will be cheaper.
   2. no trusts are required.
   3. tax relief will be available on the premiums.
   4. there is no underwriting involved.

4. What is the correct description of the guaranteed insurability option on a life assurance policy?
   1. It provides a guaranteed increase to the sum assured by a stated percentage every five years.
   2. It allows the policyholder to increase the sum assured by the rate of inflation every ten years without the need for further underwriting.
   3. It allows the policyholder to increase the sum assured on stated events within a specified time period without the need for further underwriting.
   4. It guarantees to increase the sum assured every year in line with the increase in prices.

5. Elaine, aged 28 and single, made a claim for employment support allowance (ESA), and has been placed in the work-related activity group. This means that she will have
   1. a higher level of benefit than those in the support group.
   2. benefits paid for a maximum of 14 weeks.
   3. been attending mandatory work-focused interviews from week 8 of her claim.
   4. a work capability assessment every 4 weeks.

Answers

1. D; See R05 Study Text, Chp 7; Rationale: If Karina claims on the diagnosis of a critical illness, a combined life and critical illness policy will not pay out a further sum on her death, as the critical illness benefit will be viewed as an accelerated death benefit.
2. B; See R05 Study Text, Chp 9; Rationale: An ASU policy set up by an individual will pay out benefits tax free. However, there will be no tax relief on the premiums payable.
3. B; See R05 Study Text, Chp 11; Rationale: Life of another policies negate the need for trusts, because the proceeds are paid to the policyholder rather than the life assured, and it is the policyholder who needs the funds to buy the deceased’s share of the business.
4. C; See R05 Study Text, Chp 4; Rationale: The guaranteed insurability option allows the policyholder to increase the sum assured on stated events (such as childbirth or moving house) within a specified time period, without the need for further underwriting.
5. C; See R05 Study Text, Chp 3; Rationale: When an individual is placed in the work-related activity group for employment and support allowance (ESA), they must attend work-focused interviews from week eight of their claim.

Grab the resources you need!

If you want a clearer sense of what exam-standard R05 questions look like, structured mock exams make the difference. Our full R05 E-Mocks are built to reflect the real paper. Access the free taster to preview the layout, style and depth of the complete resource.

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