TOPIC 16 Flashcards
Protection for dependants in the event of death or illness is likely to be most crucial at which life stage?
Young, single person.
Younger couple with children.
Middle-aged couple, children have left home.
Younger couple with children.
PMI may become a priority at which life stage?
Young, single person.
Younger couple with children.
Middle-aged couple, children have left home.
Middle-aged couple, children have left home.
Financial protection through life assurance is unlikely to be a priority for which of the following?
Young, single person.
Younger couple with children.
Middle-aged couple, children have left home.
Young, single person.
If a mortgaged property owner dies, the survivor might end up with the whole mortgage while owning only half the value of the property if it was registered:
as tenants in common.
as a joint tenancy.
in the deceased’s sole name.
as tenants in common.
If a person has an amount of protection already in place, they are likely to have no shortfall. True or false?
True False
False
Protection funds may be used to meet what liabilities without selling property?
Income.
IHT.
Tenancy.
IHT.
The shortfall in protection cover can be expressed as the difference between the amount of protection that would be needed if the risk event happened, and the:
amount of protection the client desires.
amount of protection the client currently has.
amount of protection the client will have in five years’ time.
amount of protection the client currently has.
The mortgagee will both recommend and arrange life cover. True or false?
True False
False
Which of the following protection needs is generally prioritised highest?
Protection of dependants from the effects of loss of income in the event of premature death.
Protection of income for a time later in life when the client does not want to work.
Protecting self and dependants from the effects of losing the ability to earn an income in the long term.
Protection of dependants from the effects of loss of income in the event of premature death.
If a mortgaged property owner dies, the survivor will still have an outstanding mortgage on the property, even though they become the sole owner. What form of ownership does this describe?
Registered in the deceased’s sole name.
Registered as a joint tenancy.
Registered as tenants in common.
Registered as a joint tenancy.
This could cause problems with mortgage repayments, because only one party is contributing to the mortgage whereas both likely contributed in the past
PMI is aimed at covering:
acute conditions.
chronic conditions.
debilitating conditions.
acute conditions.
“I feel confident that the government will help me out if things go wrong.” This person is voicing which reason for underinsurance?
Affordability perception.
Consumer trust.
State provision.
State provision.
Some people want to meet certain tax liabilities without selling property. This relates to which tax?
IHT.
Income tax.
Capital gains tax.
IHT.
In the event of a person’s death, a surviving family member may require additional capital to cover mortgages, other debts or:
adaptations to the home.
funeral costs.
medical care.
funeral costs.
