QFA LIFE ASSURANCE SAMPLE PAPER 1 AND 2
WITH 100 QUESTIONS EACH AND CORRECT
VERIFIED ANSWERS
(100% CORRECT ANSWERS)
(NEWLY UPDATED 2026!!)
PAPER 1
A policy which provides a fixed amount of life cover for life in return for a fixed
premium is called which type of policy?
A Decreasing Term Assurance
B Guaranteed whole of life
C Unit-linked whole of life
D Temporary assurance - CORRECT ANSWER ✔✔- B
2.3.1 - Guaranteed Whole of Life
A guaranteed whole of life assurance policyholder has ceased paying premiums,
yet the life company has maintained the policy with reduced cover. This policy is
referred to as:
A surrendered
B paid up
C subrogated
Pg. 1
,D assigned - CORRECT ANSWER ✔✔- B
2.3.1.1 - Encashment value
A unit-linked whole of life policy has life cover of €100,000. It also has 1,450 units
allocated to the policy and the current unit price is €1.44.
What is the current encashment value of the policy, before exit tax?
A €1,007
B €2,088
C €97,912
D €100,000 - CORRECT ANSWER ✔✔- B
2.3.2.1 - Unit linked policies
If a unit-linked whole of life policy has a sum assured of €100,000 and an
encashment value of €5,000 at the start of the month, what is the sum at risk
under this policy for that month?
A €5,000
B €95,000
C €100,000
D €105,000 - CORRECT ANSWER ✔✔- B
2.3.2.2 - Life cover payable on death
Pg. 2
,Which one of the following impacts on the level of premium payable for €100,000
life assurance cover on a unit-linked whole of life policy?
A The life assured's gender
B The current exit tax rate
C The current higher rate of income tax
D The anticipated investment return of the unit fund to which the policy will be
linked - CORRECT ANSWER ✔✔- D
2.3.2.3 - The Premium
The encashment value of a unit-linked whole of life policy has run down over time
and has now become zero. Which of the following options will the life company
now have in relation to this policy?
(i) Terminate the policy
(ii) Recommend an increased premium to the policyholder
(iii) Reduce the cover.
A (ii) only
B (i) and (ii) only
C (ii) and (iii) only
D (i), (ii) and (iii) - CORRECT ANSWER ✔✔- D
Pg. 3
, 2.3.2.6 - Bomb out
The Disclosure of Information Notice for a unit-linked whole of life policy shows
the policy providing cover to the life assured's 82nd birthday based on the
premium payable.
The notice must also show the increased premium estimated to provide cover
until which subsequent birthday?
A 85th
B 90th
C 92nd
D 100th - CORRECT ANSWER ✔✔- C
2.3.2.8 - Disclosure of Information Notice
Joint life last survivor guaranteed whole of life cover is cheaper than
corresponding joint life first death cover because:
A a lower government insurance levy applies to joint life last survivor policies
B exit tax does not apply to joint life last survivor policies
C the cover under the joint life last survivor policy reduces on the death of the
first of the lives assured to die
D it will likely be longer before the cover is paid out on the second death -
CORRECT ANSWER ✔✔- D
2.3.3 - Joint Life cover
Pg. 4
WITH 100 QUESTIONS EACH AND CORRECT
VERIFIED ANSWERS
(100% CORRECT ANSWERS)
(NEWLY UPDATED 2026!!)
PAPER 1
A policy which provides a fixed amount of life cover for life in return for a fixed
premium is called which type of policy?
A Decreasing Term Assurance
B Guaranteed whole of life
C Unit-linked whole of life
D Temporary assurance - CORRECT ANSWER ✔✔- B
2.3.1 - Guaranteed Whole of Life
A guaranteed whole of life assurance policyholder has ceased paying premiums,
yet the life company has maintained the policy with reduced cover. This policy is
referred to as:
A surrendered
B paid up
C subrogated
Pg. 1
,D assigned - CORRECT ANSWER ✔✔- B
2.3.1.1 - Encashment value
A unit-linked whole of life policy has life cover of €100,000. It also has 1,450 units
allocated to the policy and the current unit price is €1.44.
What is the current encashment value of the policy, before exit tax?
A €1,007
B €2,088
C €97,912
D €100,000 - CORRECT ANSWER ✔✔- B
2.3.2.1 - Unit linked policies
If a unit-linked whole of life policy has a sum assured of €100,000 and an
encashment value of €5,000 at the start of the month, what is the sum at risk
under this policy for that month?
A €5,000
B €95,000
C €100,000
D €105,000 - CORRECT ANSWER ✔✔- B
2.3.2.2 - Life cover payable on death
Pg. 2
,Which one of the following impacts on the level of premium payable for €100,000
life assurance cover on a unit-linked whole of life policy?
A The life assured's gender
B The current exit tax rate
C The current higher rate of income tax
D The anticipated investment return of the unit fund to which the policy will be
linked - CORRECT ANSWER ✔✔- D
2.3.2.3 - The Premium
The encashment value of a unit-linked whole of life policy has run down over time
and has now become zero. Which of the following options will the life company
now have in relation to this policy?
(i) Terminate the policy
(ii) Recommend an increased premium to the policyholder
(iii) Reduce the cover.
A (ii) only
B (i) and (ii) only
C (ii) and (iii) only
D (i), (ii) and (iii) - CORRECT ANSWER ✔✔- D
Pg. 3
, 2.3.2.6 - Bomb out
The Disclosure of Information Notice for a unit-linked whole of life policy shows
the policy providing cover to the life assured's 82nd birthday based on the
premium payable.
The notice must also show the increased premium estimated to provide cover
until which subsequent birthday?
A 85th
B 90th
C 92nd
D 100th - CORRECT ANSWER ✔✔- C
2.3.2.8 - Disclosure of Information Notice
Joint life last survivor guaranteed whole of life cover is cheaper than
corresponding joint life first death cover because:
A a lower government insurance levy applies to joint life last survivor policies
B exit tax does not apply to joint life last survivor policies
C the cover under the joint life last survivor policy reduces on the death of the
first of the lives assured to die
D it will likely be longer before the cover is paid out on the second death -
CORRECT ANSWER ✔✔- D
2.3.3 - Joint Life cover
Pg. 4
