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A Quick Revision Guide on Protection Products

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 / illnessTax-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 / unemploymentAmount covers mortgage / mortgage-related policies when unable to work due to accident / illness redundancy/unemployment
Paid until return to work / policy ends / retire / deathUsually annual contract but can be for shorter periods – can be cancelled by the insurerUsually annual contract but can be for shorter periods / can be cancelled by insurer / max payment 1 / 2 yearsBenefits 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 yearsDeferred period – 30 or 60 daysDeferred period no more than 60 days
Benefit limited to 50-65% pre-claim income / no limit on claimsBenefit usually fixed sum not related to earningsBenefit limited to set % of earnings and a monthly max amountUsually restricted to mortgage costs / fixed sum or % of salary
Rehabilitation benefit – proportionate benefit tops up income when return to work with lower earningsOther 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 incapacityMPPI 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
Here is a handy revision guide on protection products to help with your #CIIExam revision. Click To Tweet

 

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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!

Click here to download our free taster mock paper for CII R01

Alternatively, you can download the taster for CF1, R05, or R06 if you’re studying for any of those exams.