R01 1st deck

Question 1

What is PIMPSI

Answer 1

Protection, Income Protection, Mortgages. Pensions, Savings and Investment

Question 2

What is family income benefit protection

Answer 2

A type of protection which will pay a set amount per year after death as an income. The term is set at the start

Question 3

What is an increasing term

Answer 3

Both the sum and premium increase each year

Question 4

Decreasing term =

Answer 4

Fixed term and premium with a decreasing sum

Question 5

Endowment =

Answer 5

A form of savings plan where the premium is used to provide cover which would repay a mortgage on death

Question 6

Income protection =

Answer 6

Pays an ongoing income if the customer is unable to work due to sickness or accident. Covers a maximum of 60% of your income. Insurers can’t cancel it.

Question 7

Payment protection =

Answer 7

Short term general insurance policies which will pay loan repayments or mortgage payments

Question 8

What needs to be considered with a pension?

Answer 8

Age, income, family situation, lump sum needs, current arrangements

Question 9

What is the state pension age

Answer 9

67

Question 10

What are the splits of an auto enrolment workplace pension?

Answer 10

Employer pays 3%, employee pays 5%, HMRC pays 1%

Question 11

What is an example of a national saving and investment scheme?

Answer 11

Premium bonds

Question 12

What is an equity?

Answer 12

When you have Part ownership of the capital of a company

Question 13

How can adviser assess the strength of an equity?

Answer 13

Review it’s dividend yield

Question 14

What are some examples of direct investments?

Answer 14

Equities, Fixed interest bonds, Property

Question 15

What is a unit trust?

Answer 15

Collective investment funds that invest in a wide range of assets. Some are active, some are passive

Question 16

What is the nil rate band for IHT?

Answer 16

£325,000

Question 17

What is everything above the nil rate IHT taxed at?

Answer 17

40%

Question 18

What is the maximum annual gift allowence?

Answer 18

£3,000

Question 19

What is the length of a medium term investment?

Answer 19

5-15years

Question 20

How long do you need to be working before maternity pay kicks in?

Answer 20

6 months

Question 21

For a Potentially exempt transfer (Gift) to be effective, what needs to hold?

Answer 21

The gift must be irrevocable

Question 22

The interest and capital value on index gilts are linked to?

Answer 22

RPI

Question 23

What type of deal is met with creditors if you are about to be bankrupt?

Answer 23

Individual voluntary arrangement

Question 24

What is a WoL policy?

Answer 24

Protection that is taken out which will pay a lump sum on death

Question 25

What are the types of WoL?

Answer 25

Non-profit (most expensive premium with a set lump sum), with profit (premium can pay bonuses), Unit linked

Question 26

How much should an emergency fund be?

Answer 26

between 1/4 and 1/2 of take home pay

Question 27

What is the maximum fine the Pension regulator can enforce on an individual?

Answer 27

£5,000

Question 28

How old do you need to be to qualify for income support?

Answer 28

18

Question 29

When are personal pension benefits avaliable?

Answer 29

55

Question 30

How often should a IVA be reviewed by the insolvency practioner?

Answer 30

Annually