Learning Objective 2

Question 1

Health / incapacity to work / Accident

Answer 1

• Income Protection
• Personal accident and sickness

Will cover loss of earnings due to being unable to work for a specified period of time due to illness or accident

Question 2

Income / Mortgage and debts

Answer 2

• Income Protection
• PPI/MPPI

Being unable to work could cause difficulty in paying debts such as mortgage.
Having a protection plan in place can ensure you are able to pay these debts off despite not earning

Question 3

Death

Answer 3

• Life assurance
• Critical illness
• Long Term Care

Protection for the family when you pass away, can pay off mortgage or simply provide money to support them

CI or LTC can assist with a more peaceful end, ensuring family arent stressing about money at end of someones life

Question 4

Asset protection

Answer 4

• Life assurance

IHT may be payable on death. Some people make gifts of capital in order to reduce their liability. They must surivive over 7 years after making the gift in order to completely leave the estate.

A Gift Inter-Vivos policy can be used in the event they pass within the 7 years, to cover the liability

Whole of life can be used to provide the family with a lump sum on death, to cover off any tax payable