QFALifeAssurance Sample Paper 1 Questions With
Complete Solutions
A need to accumulate a capital sum from regular surplus income over a period of time is
which type of personal financial need?
A Savings
B Investment
C Protection
D Loan
ANSWER: A
1.1 - Main types of personal financial needs
The primary financial need of a client in their 60s is likely to be:
A savings
B investment
C protection
D loans
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,ANSWER: B
1.3 - Life Cycle
Factfinding is also known as:
A suitability
B know the client
C appropriateness
D treating the client fairly
ANSWER: B
1.5 - Benefits of financial planning
If Jackie wants to maintain the real purchasing power of her life cover she should add
which option to the Term Assurance policy she is taking out?
A Insurability
B Conversion
C Indexation
D Renewal
ANSWER: C
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,2.4 - Ancillary/Optional benefits
The MAIN reason why the premium under a Term Assurance policy, which contains
automatic indexation of cover and premium, increases at a faster rate than the increase
in cover is because:
A commission is payable on each increase in premium
B the cost of life assurance cover increases with age
C stamp duty is payable on the increase in cover
D the life company imposes an increased administration charge
ANSWER: B
2.4 - Ancillary/Optional benefits
The cost of life assurance policy will be cheaper if:
(i) the life assured is female
(ii) the life assured has existing cover in place with the life company
(iii) indexation is not added as an ancillary benefit.
A (i) only
B (i) and (ii) only
C (ii) and (iii) only
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, D (iii) only
ANSWER: D
2.2.1 - Term Assurance
John and Maria have a dual life Term Assurance policy covering John for €100,000 and
Maria for €125,000 life assurance cover.
If they both die together in a car crash, what TOTAL amount will be paid out on the
policy?
A €25,000
B €100,000
C €125,000
D €225,000
ANSWER: D
2.2.1 - Term Assurance
Which one of the following statements regarding the exercise of a conversion option on
a Convertible Term Assurance (CTA) is CORRECT?
A The premium on the new policy cannot be more than the premium on the original CTA
policy
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Complete Solutions
A need to accumulate a capital sum from regular surplus income over a period of time is
which type of personal financial need?
A Savings
B Investment
C Protection
D Loan
ANSWER: A
1.1 - Main types of personal financial needs
The primary financial need of a client in their 60s is likely to be:
A savings
B investment
C protection
D loans
1 | Page
,ANSWER: B
1.3 - Life Cycle
Factfinding is also known as:
A suitability
B know the client
C appropriateness
D treating the client fairly
ANSWER: B
1.5 - Benefits of financial planning
If Jackie wants to maintain the real purchasing power of her life cover she should add
which option to the Term Assurance policy she is taking out?
A Insurability
B Conversion
C Indexation
D Renewal
ANSWER: C
2 | Page
,2.4 - Ancillary/Optional benefits
The MAIN reason why the premium under a Term Assurance policy, which contains
automatic indexation of cover and premium, increases at a faster rate than the increase
in cover is because:
A commission is payable on each increase in premium
B the cost of life assurance cover increases with age
C stamp duty is payable on the increase in cover
D the life company imposes an increased administration charge
ANSWER: B
2.4 - Ancillary/Optional benefits
The cost of life assurance policy will be cheaper if:
(i) the life assured is female
(ii) the life assured has existing cover in place with the life company
(iii) indexation is not added as an ancillary benefit.
A (i) only
B (i) and (ii) only
C (ii) and (iii) only
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, D (iii) only
ANSWER: D
2.2.1 - Term Assurance
John and Maria have a dual life Term Assurance policy covering John for €100,000 and
Maria for €125,000 life assurance cover.
If they both die together in a car crash, what TOTAL amount will be paid out on the
policy?
A €25,000
B €100,000
C €125,000
D €225,000
ANSWER: D
2.2.1 - Term Assurance
Which one of the following statements regarding the exercise of a conversion option on
a Convertible Term Assurance (CTA) is CORRECT?
A The premium on the new policy cannot be more than the premium on the original CTA
policy
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