QFA LIFE ASSURANCE SAMPLE PAPER
2 QUESTIONS WITH COMPLETE
ANSWERS
A nnneed nnto nnprovide nnfor nnthe nnfinancial nnimpact nnof nncertain nnunpredictable
nnevents, nnwhich nnmay nncause nnan nninterruption nnin nna nnclient's nnearned nnincome,
nnis nnwhich nntype nnof nnpersonal nnfinancial nnneed?
A nnSavings
B nnInvestment
C nnProtection
D nnLoan nn- nnAnswer nnC nn
1.1 nn- nnMain nntypes nnof nnpersonal nnfinancial nnneeds
The nnprimary nnfinancial nnneed nnof nna nntypical nncouple nnin nntheir nnearly nn30s nnis
nnlikely nnto nnbe:
A nnSerious nnIllness nncover
B nnLump nnsum nnInvestment
C nnRetirement nnPlanning
D nnSaving nnfor nna nndeposit nnto nnobtain nna nnhome nnloan nnto nnpurchase nnproperty. nn-
nnAnswer nnD
1.3 nn- nnLife nnCycle
A nnlife nnassurance nnpolicy nntaken nnout nnto nnpay nnoff nntaxes nnarising nnon nndeath nnis
nnwhich nntype nnof nnpolicy?
A nnSavings
B nnInvestment
C nnProtection
D nnLoan nn- nnAnswer nnC nn
1.4 nn- nnLife nnassurance nnpolicies nnto nnmeet nnfinancial nnneeds
,Which nnone nnof nnthe nnfollowing nnrestrictions nnusually nnapplies nnto nnthe nnexercise nnof
nnan nninsurability nnoption nnon nna nnlife nnassurance nnpolicy?
A nnThe nnlife nnassured nnmust nnbe nnin nngood nnhealth nnat nnthe nntime nnof nnexercise nnof
nnthe nnoption
B nnThe nnoption nnmust nnbe nnexercised nnbefore nna nnspecified nnage
C nnThe nnlife nnassured nnmust nnhave nnpaid nnpremiums nnon nnthe nnpolicy nnfor nnat
nnleast nn10 nnyears
D nnThe nnpolicy nnmust nnhave nnan nnencashment nnvalue nnat nnthe nntime nnof nnexercise
nnof nnthe nnoption nn- nnAnswer nnB
2.4 nn- nnAncillary/Optional nnBenefits
Allister nnhas nna nnTerm nnAssurance nnpolicy nnfor nn€250,000 nnlife nnassurance nncover.
nnThe nnpolicy nnalso nnprovides nnan nnequivalent nnlevel nnof nnterminal nnillness nncover.
If nnAllister nnmakes nna nnsuccessful nnterminal nnillness nnclaim nnon nnthe nnpolicy, nnwhat
nnhappens nnto nnthe nnpolicy nnafter nnpayment nnof nnthe nnterminal nnillness nnclaim?
A nnIt nncontinues nnwith nn€250,000 nnlife nncover, nnsubject nnto nnthe nncontinued
nnpayment nnof nnthe nnpremium
B nnIt nnis nnmade nnpaid nnup nnwith nna nnreduced nnlevel nnof nnlife nncover
C nnIt nnis nnmade nnpaid nnup nnat nn€250,000 nnlife nncover, nnwith nnno nnfurther nnpremiums
nnto nnpay
D nnIt nnis nnterminated nnby nnthe nnlife nncompany nn- nnAnswer nnD nn
2.47 nn- nnAncillary/Optional nnbenefits
Which nnone nnof nnthe nnfollowing nnfactors nnwill nnNOT nnimpact nnon nnthe nnpremium
nncharged nnto nnMairead nnfor nna nnnew nnTerm nnAssurance nnpolicy nnshe nnis nnnow
nntaking nnout?
A nnHer nnsmoking nnstatus
B nnThe nnterm nnof nnthe nnpolicy
C nnHer nngender
D nnHer nnage nn- nnAnswer nnC
2.2.1 nn- nnTerm nnAssurance
Convertible nnTerm nnAssurance nncosts nnmore nnthan nnTerm nnAssurance nncover nnfor
nnthe nnsame nnterm nnand nncover nnbecause:
A nnunhealthy nnlives nnare nnmore nnlikely nnto nnexercise nnthe nnconversion nnoption nnthan
nnhealthy nnones
B nnthe nnConvertible nnTerm nnAssurance nnpolicy nnpays nnmore nncommission nnthan
nnthe nnTerm nnAssurance nnpolicy
, C nnpolicyholders nncan nnget nnincome nntax nnrelief nnon nnthe nnConvertible nnTerm
nnAssurance nnpremium
D nnhealthy nnlives nnare nnmore nnlikely nnto nnexercise nnthe nnconversion nnoption nnthan
nnunhealthy nnones nn- nnAnswer nnA nn
2.2.2 nn- nnConvertible nnTerm nnAssurance nn(CTA)
Joe nnhas nna nnConvertible nnTerm nnAssurance nnpolicy nnwhich nnis nnabout nnto nnend nnin
nna nnfew nnmonths' nntime. nnIf nnJoe nndecides nnNOT nnto nnexercise nnthe nnconversion
nnoption:
A nnhe nncan nncontinue nnthe nncover nnfor nnat nnleast nnthree nnmonths nnafter nnthe nnend
nnof nnthe nnpolicy nnterm
B nnhe nnwill nnreceive nna nnsmall nncash nnpayment nnand nnthe nnpolicy nnwill nnthen nnend
nnwithout nnbenefit nnat nnthe nnend nnof nnthe nnpolicy nnterm
C nnthe nncover nnceases nnimmediately nnon nnnotification nnto nnthe nnlife nncompany nnthat
nnthe nnconversion nnoption nnis nnnot nnbeing nnexercised
D nnthe nnpolicy nnwill nnend nnwith nnno nnbenefit nnat nnthe nnend nnof nnthe nnpolicy nnterm nn-
nnAnswer nnD
2.2.2 nn- nnConvertible nnTerm nnAssurance nn(CTA)
The nnMAXIMUM nnage nnto nnwhich nnPension nnTerm nnAssurance nncover nncan nnrun
nnis:
A nn65
B nn70
C nn75
D nn80 nn- nnAnswer nnC nn
2.2.3 nn- nnPension nnTerm nnAssurance
A nnregular nnincome nnbenefit nnpolicy nnis nnwhich nnone nnof nnthe nnfollowing nntypes nnof
nnTerm nnAssurance nnpolicies?
A nnConvertible
B nnDecreasing
C nnIncreasing
D nnUnit-linked nn- nnAnswer nnB
2.2.4 nn- nnRegular nnIncome nnBenefit
Which nnone nnof nnthe nnfollowing nnis nna nnrisk nnfor nnan nnindividual nnmortgage
nnprotection nnpolicyholder?
2 QUESTIONS WITH COMPLETE
ANSWERS
A nnneed nnto nnprovide nnfor nnthe nnfinancial nnimpact nnof nncertain nnunpredictable
nnevents, nnwhich nnmay nncause nnan nninterruption nnin nna nnclient's nnearned nnincome,
nnis nnwhich nntype nnof nnpersonal nnfinancial nnneed?
A nnSavings
B nnInvestment
C nnProtection
D nnLoan nn- nnAnswer nnC nn
1.1 nn- nnMain nntypes nnof nnpersonal nnfinancial nnneeds
The nnprimary nnfinancial nnneed nnof nna nntypical nncouple nnin nntheir nnearly nn30s nnis
nnlikely nnto nnbe:
A nnSerious nnIllness nncover
B nnLump nnsum nnInvestment
C nnRetirement nnPlanning
D nnSaving nnfor nna nndeposit nnto nnobtain nna nnhome nnloan nnto nnpurchase nnproperty. nn-
nnAnswer nnD
1.3 nn- nnLife nnCycle
A nnlife nnassurance nnpolicy nntaken nnout nnto nnpay nnoff nntaxes nnarising nnon nndeath nnis
nnwhich nntype nnof nnpolicy?
A nnSavings
B nnInvestment
C nnProtection
D nnLoan nn- nnAnswer nnC nn
1.4 nn- nnLife nnassurance nnpolicies nnto nnmeet nnfinancial nnneeds
,Which nnone nnof nnthe nnfollowing nnrestrictions nnusually nnapplies nnto nnthe nnexercise nnof
nnan nninsurability nnoption nnon nna nnlife nnassurance nnpolicy?
A nnThe nnlife nnassured nnmust nnbe nnin nngood nnhealth nnat nnthe nntime nnof nnexercise nnof
nnthe nnoption
B nnThe nnoption nnmust nnbe nnexercised nnbefore nna nnspecified nnage
C nnThe nnlife nnassured nnmust nnhave nnpaid nnpremiums nnon nnthe nnpolicy nnfor nnat
nnleast nn10 nnyears
D nnThe nnpolicy nnmust nnhave nnan nnencashment nnvalue nnat nnthe nntime nnof nnexercise
nnof nnthe nnoption nn- nnAnswer nnB
2.4 nn- nnAncillary/Optional nnBenefits
Allister nnhas nna nnTerm nnAssurance nnpolicy nnfor nn€250,000 nnlife nnassurance nncover.
nnThe nnpolicy nnalso nnprovides nnan nnequivalent nnlevel nnof nnterminal nnillness nncover.
If nnAllister nnmakes nna nnsuccessful nnterminal nnillness nnclaim nnon nnthe nnpolicy, nnwhat
nnhappens nnto nnthe nnpolicy nnafter nnpayment nnof nnthe nnterminal nnillness nnclaim?
A nnIt nncontinues nnwith nn€250,000 nnlife nncover, nnsubject nnto nnthe nncontinued
nnpayment nnof nnthe nnpremium
B nnIt nnis nnmade nnpaid nnup nnwith nna nnreduced nnlevel nnof nnlife nncover
C nnIt nnis nnmade nnpaid nnup nnat nn€250,000 nnlife nncover, nnwith nnno nnfurther nnpremiums
nnto nnpay
D nnIt nnis nnterminated nnby nnthe nnlife nncompany nn- nnAnswer nnD nn
2.47 nn- nnAncillary/Optional nnbenefits
Which nnone nnof nnthe nnfollowing nnfactors nnwill nnNOT nnimpact nnon nnthe nnpremium
nncharged nnto nnMairead nnfor nna nnnew nnTerm nnAssurance nnpolicy nnshe nnis nnnow
nntaking nnout?
A nnHer nnsmoking nnstatus
B nnThe nnterm nnof nnthe nnpolicy
C nnHer nngender
D nnHer nnage nn- nnAnswer nnC
2.2.1 nn- nnTerm nnAssurance
Convertible nnTerm nnAssurance nncosts nnmore nnthan nnTerm nnAssurance nncover nnfor
nnthe nnsame nnterm nnand nncover nnbecause:
A nnunhealthy nnlives nnare nnmore nnlikely nnto nnexercise nnthe nnconversion nnoption nnthan
nnhealthy nnones
B nnthe nnConvertible nnTerm nnAssurance nnpolicy nnpays nnmore nncommission nnthan
nnthe nnTerm nnAssurance nnpolicy
, C nnpolicyholders nncan nnget nnincome nntax nnrelief nnon nnthe nnConvertible nnTerm
nnAssurance nnpremium
D nnhealthy nnlives nnare nnmore nnlikely nnto nnexercise nnthe nnconversion nnoption nnthan
nnunhealthy nnones nn- nnAnswer nnA nn
2.2.2 nn- nnConvertible nnTerm nnAssurance nn(CTA)
Joe nnhas nna nnConvertible nnTerm nnAssurance nnpolicy nnwhich nnis nnabout nnto nnend nnin
nna nnfew nnmonths' nntime. nnIf nnJoe nndecides nnNOT nnto nnexercise nnthe nnconversion
nnoption:
A nnhe nncan nncontinue nnthe nncover nnfor nnat nnleast nnthree nnmonths nnafter nnthe nnend
nnof nnthe nnpolicy nnterm
B nnhe nnwill nnreceive nna nnsmall nncash nnpayment nnand nnthe nnpolicy nnwill nnthen nnend
nnwithout nnbenefit nnat nnthe nnend nnof nnthe nnpolicy nnterm
C nnthe nncover nnceases nnimmediately nnon nnnotification nnto nnthe nnlife nncompany nnthat
nnthe nnconversion nnoption nnis nnnot nnbeing nnexercised
D nnthe nnpolicy nnwill nnend nnwith nnno nnbenefit nnat nnthe nnend nnof nnthe nnpolicy nnterm nn-
nnAnswer nnD
2.2.2 nn- nnConvertible nnTerm nnAssurance nn(CTA)
The nnMAXIMUM nnage nnto nnwhich nnPension nnTerm nnAssurance nncover nncan nnrun
nnis:
A nn65
B nn70
C nn75
D nn80 nn- nnAnswer nnC nn
2.2.3 nn- nnPension nnTerm nnAssurance
A nnregular nnincome nnbenefit nnpolicy nnis nnwhich nnone nnof nnthe nnfollowing nntypes nnof
nnTerm nnAssurance nnpolicies?
A nnConvertible
B nnDecreasing
C nnIncreasing
D nnUnit-linked nn- nnAnswer nnB
2.2.4 nn- nnRegular nnIncome nnBenefit
Which nnone nnof nnthe nnfollowing nnis nna nnrisk nnfor nnan nnindividual nnmortgage
nnprotection nnpolicyholder?
