Chapter 10 - Personal Protection

Question 1

Does an advisor need to have a level four qualification to provide advice on freestanding critical illness cover

Answer 1

No

Question 2

Why might an individual with a low or adverse attitude to risk avoid a reviewable income protection policy?

Answer 2

Premiums could increase significantly in the future due to adverse changes to insurance and investment risks

Question 3

What is the maximum total gross contribution that someone who is disabled with no pensionable earnings, but has significant savings can make into any tax year

Answer 3

£3600

Question 4

Post divorce, do the people have automatic insurable interest in each other

Answer 4

They do not have an automatic insurable interest however, if there is an application to make maintenance payments, this does create an interest

Question 5

What effect will a divorce have a will

Answer 5

Divorce will not invalidate a will made disinherit a former spouse

Question 6

What is a risk other than investment risk might have to be explained to a client on a protection policy

Answer 6

Risks relating to reviewable premiums

Question 7

How often should a client affairs ideally, be reviewed

Answer 7

Yeah, we are more frequently if warranted

Question 8

Apart from comparing covering costs, which of a key factor should usually be considered for Faisal advisor intends to recommend that the client cancelled an existing own life term assurance policy, and replace it with a new one

Answer 8

The underwriting requirements

This is because they all have different elements for the level above, which a GPs report is required, the level above which medical examination as required, the level beyond, which reassurance is required

Question 9

Reduction in liabilities to which types of tax could potentially be made if a couple enter into a civil partnership

Answer 9

Income tax capital gains tax and inheritance tax

Question 10

After completion of a sales process to meet FCA rules, what documents should the advisor keep copies of?

Answer 10

Fuck find, written recommendations and suitability letters

Question 11

The fact is used to calculate the amount of capital required under the protection policy to generate the net income needed a broadly based on what

Answer 11

Temporary annuity rates