Friday Five Focus on Protection – 9 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 2022/23, examinable by the CII until 31 August 2023. They do not relate to tax year 2023/24 which is only examinable by the CII from 1 September 2023.

1. Which of the following is not an aggregate driver in relation to the demand for mortality protection?
   1. Movements in the housing market
   2. Whether or not the client has any dependents
   3. Income per head
   4. The employment history of the applicant

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. Norma is about to start receiving benefits from her income protection policy. How will the payments be made to her?
   1. Gross but liable for income tax at her appropriate rates
   2. After the deduction of income tax at her appropriate rates
   3. After the deduction of income tax at basic rate
   4. Gross with no liability for income tax

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. D – See R05 Study Text, Chp 1
   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. D – 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 2
   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.