A Quick Revision Guide on Protection Products
Protection products are tested within the CII R01 exam, the R05 exam, the R06 exam, as well as the CF1 exam. In each exam, in addition to questions on the different types of term assurance, there could also be a number of questions relating to income protection and other insurance-based policies. Here, we explain these further to help with your CII exam revision.
The following table may help as a revision guide for the basic features of:
- income protection; as well as
- Personal Accident and Sickness (PAS) insurance;
- Accident Sickness and Unemployment (ASU) insurance; and
- Mortgage Payment Protection Insurance (MPPI).
Income Protection | Personal Accident and Sickness Insurance (PAS) | Accident Sickness and Unemployment Insurance (ASU) | Mortgage Payment Protection Insurance (MPPI) | |
|---|---|---|---|---|
| Tax-free income when unable to work due to accident / illness | Tax-free income when unable to work due to accident / illness Standalone or bolt on to household / motor / travel insurance | Tax-free income when unable to work due to accident / illness / redundancy / unemployment | Amount covers mortgage / mortgage-related policies when unable to work due to accident / illness redundancy/unemployment | |
| Paid until return to work / policy ends / retire / death | Usually annual contract but can be for shorter periods – can be cancelled by the insurer | Usually annual contract but can be for shorter periods / can be cancelled by insurer / max payment 1 / 2 years | Benefits usually payable for 12, 18, or 24 months | |
| Deferred period (4, 13, 26, 52, or 104 weeks) | Deferred period (1 to 14 days) – only pays benefit for 1 / 2 years | Deferred period – 30 or 60 days | Deferred period no more than 60 days | |
| Benefit limited to 50-65% pre-claim income / no limit on claims | Benefit usually fixed sum not related to earnings | Benefit limited to set % of earnings and a monthly max amount | Usually restricted to mortgage costs / fixed sum or % of salary | |
| Rehabilitation benefit – proportionate benefit tops up income when return to work with lower earnings | Other benefits: Refund of medical expenses Lump-sum payments for loss of limb, loss of sight, etc. | Pre-existing medical conditions, voluntary redundancy, and dismissal excluded Lump-sum payments for loss of limb, loss of sight, etc. | Must cover self-employed and contract workers | |
| Proportionate benefit – reduced benefit equal to reduction in earnings compared to those in 12 months before incapacity | MPPI cannot be sold until later of 7 days after the loan or at point a personal illustration is given | |||
| Guaranteed or reviewable premiums Own / suited or any occupation Automatic waiver of premium | ||||
Grab the resources you need!
If you’re studying for your CII R01 exam, and you’re wanting a feeling of confidence on exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R01 mock paper taster now!
Alternatively, you can download the taster for CF1, R05, or R06 if you’re studying for any of those exams.