R01 1st deck Flashcards
What is PIMPSI
Protection, Income Protection, Mortgages. Pensions, Savings and Investment
What is family income benefit protection
A type of protection which will pay a set amount per year after death as an income. The term is set at the start
What is an increasing term
Both the sum and premium increase each year
Decreasing term =
Fixed term and premium with a decreasing sum
Endowment =
A form of savings plan where the premium is used to provide cover which would repay a mortgage on death
Income protection =
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.
Payment protection =
Short term general insurance policies which will pay loan repayments or mortgage payments
What needs to be considered with a pension?
Age, income, family situation, lump sum needs, current arrangements
What is the state pension age
67
What are the splits of an auto enrolment workplace pension?
Employer pays 3%, employee pays 5%, HMRC pays 1%
What is an example of a national saving and investment scheme?
Premium bonds
What is an equity?
When you have Part ownership of the capital of a company
How can adviser assess the strength of an equity?
Review it’s dividend yield
What are some examples of direct investments?
Equities, Fixed interest bonds, Property
What is a unit trust?
Collective investment funds that invest in a wide range of assets. Some are active, some are passive
What is the nil rate band for IHT?
£325,000
What is everything above the nil rate IHT taxed at?
40%
What is the maximum annual gift allowence?
£3,000
What is the length of a medium term investment?
5-15years
How long do you need to be working before maternity pay kicks in?
6 months
For a Potentially exempt transfer (Gift) to be effective, what needs to hold?
The gift must be irrevocable
The interest and capital value on index gilts are linked to?
RPI
What type of deal is met with creditors if you are about to be bankrupt?
Individual voluntary arrangement
What is a WoL policy?
Protection that is taken out which will pay a lump sum on death
What are the types of WoL?
Non-profit (most expensive premium with a set lump sum), with profit (premium can pay bonuses), Unit linked
How much should an emergency fund be?
between 1/4 and 1/2 of take home pay
What is the maximum fine the Pension regulator can enforce on an individual?
£5,000
How old do you need to be to qualify for income support?
18
When are personal pension benefits avaliable?
55
How often should a IVA be reviewed by the insolvency practioner?
Annually
