QFA Life Assurance verified answer questions
A need to provide for the financial impact of certain unpredictable
events, which may cause an interruption in a client's earned income, is
which type of personal financial need?
A Savings
B Investment
C Protection
D Loan Correct Answer-C
1.1 - Main types of personal financial needs
The primary financial need of a typical couple in their early 30s is likely
to be:
A Serious Illness cover
B Lump sum Investment
C Retirement Planning
D Saving for a deposit to obtain a home loan to purchase property.
Correct Answer-D
1.3 - Life Cycle
,A life assurance policy taken out to pay off taxes arising on death is
which type of policy?
A Savings
B Investment
C Protection
D Loan Correct Answer-C
1.4 - Life assurance policies to meet financial needs
Which one of the following restrictions usually applies to the exercise of
an insurability option on a life assurance policy?
A The life assured must be in good health at the time of exercise of the
option
B The option must be exercised before a specified age
C The life assured must have paid premiums on the policy for at least 10
years
D The policy must have an encashment value at the time of exercise of
the option Correct Answer-B
2.4 - Ancillary/Optional Benefits
Allister has a Term Assurance policy for €250,000 life assurance cover.
The policy also provides an equivalent level of terminal illness cover.
,If Allister makes a successful terminal illness claim on the policy, what
happens to the policy after payment of the terminal illness claim?
A It continues with €250,000 life cover, subject to the continued
payment of the premium
B It is made paid up with a reduced level of life cover
C It is made paid up at €250,000 life cover, with no further premiums to
pay
D It is terminated by the life company Correct Answer-D
2.47 - Ancillary/Optional benefits
Which one of the following factors will NOT impact on the premium
charged to Mairead for a new Term Assurance policy she is now taking
out?
A Her smoking status
B The term of the policy
C Her gender
D Her age Correct Answer-C
2.2.1 - Term Assurance
Convertible Term Assurance costs more than Term Assurance cover for
the same term and cover because:
, A unhealthy lives are more likely to exercise the conversion option than
healthy ones
B the Convertible Term Assurance policy pays more commission than
the Term Assurance policy
C policyholders can get income tax relief on the Convertible Term
Assurance premium
D healthy lives are more likely to exercise the conversion option than
unhealthy ones Correct Answer-A
2.2.2 - Convertible Term Assurance (CTA)
Joe has a Convertible Term Assurance policy which is about to end in a
few months' time. If Joe decides NOT to exercise the conversion option:
A he can continue the cover for at least three months after the end of the
policy term
B he will receive a small cash payment and the policy will then end
without benefit at the end of the policy term
C the cover ceases immediately on notification to the life company that
the conversion option is not being exercised
D the policy will end with no benefit at the end of the policy term
Correct Answer-D
2.2.2 - Convertible Term Assurance (CTA)
A need to provide for the financial impact of certain unpredictable
events, which may cause an interruption in a client's earned income, is
which type of personal financial need?
A Savings
B Investment
C Protection
D Loan Correct Answer-C
1.1 - Main types of personal financial needs
The primary financial need of a typical couple in their early 30s is likely
to be:
A Serious Illness cover
B Lump sum Investment
C Retirement Planning
D Saving for a deposit to obtain a home loan to purchase property.
Correct Answer-D
1.3 - Life Cycle
,A life assurance policy taken out to pay off taxes arising on death is
which type of policy?
A Savings
B Investment
C Protection
D Loan Correct Answer-C
1.4 - Life assurance policies to meet financial needs
Which one of the following restrictions usually applies to the exercise of
an insurability option on a life assurance policy?
A The life assured must be in good health at the time of exercise of the
option
B The option must be exercised before a specified age
C The life assured must have paid premiums on the policy for at least 10
years
D The policy must have an encashment value at the time of exercise of
the option Correct Answer-B
2.4 - Ancillary/Optional Benefits
Allister has a Term Assurance policy for €250,000 life assurance cover.
The policy also provides an equivalent level of terminal illness cover.
,If Allister makes a successful terminal illness claim on the policy, what
happens to the policy after payment of the terminal illness claim?
A It continues with €250,000 life cover, subject to the continued
payment of the premium
B It is made paid up with a reduced level of life cover
C It is made paid up at €250,000 life cover, with no further premiums to
pay
D It is terminated by the life company Correct Answer-D
2.47 - Ancillary/Optional benefits
Which one of the following factors will NOT impact on the premium
charged to Mairead for a new Term Assurance policy she is now taking
out?
A Her smoking status
B The term of the policy
C Her gender
D Her age Correct Answer-C
2.2.1 - Term Assurance
Convertible Term Assurance costs more than Term Assurance cover for
the same term and cover because:
, A unhealthy lives are more likely to exercise the conversion option than
healthy ones
B the Convertible Term Assurance policy pays more commission than
the Term Assurance policy
C policyholders can get income tax relief on the Convertible Term
Assurance premium
D healthy lives are more likely to exercise the conversion option than
unhealthy ones Correct Answer-A
2.2.2 - Convertible Term Assurance (CTA)
Joe has a Convertible Term Assurance policy which is about to end in a
few months' time. If Joe decides NOT to exercise the conversion option:
A he can continue the cover for at least three months after the end of the
policy term
B he will receive a small cash payment and the policy will then end
without benefit at the end of the policy term
C the cover ceases immediately on notification to the life company that
the conversion option is not being exercised
D the policy will end with no benefit at the end of the policy term
Correct Answer-D
2.2.2 - Convertible Term Assurance (CTA)
