QFA
QFA LIFE ASSURANCE SAMPLE PAPER 1 EXAM
QUESTIONS AND ANSWER
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 - correct answer A
1.1 - Main types of personal financial needs
,QFA
The primary financial need of a client in their 60s is
likely to be:
A savings
B investment
C protection
D loans - correct answer B
1.3 - Life Cycle
Factfinding is also known as:
A suitability
B know the client
C appropriateness
D treating the client fairly - correct answer B
1.5 - Benefits of financial planning
,QFA
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 - correct answer C
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
, QFA
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 - correct 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
D (iii) only - correct answer D
QFA LIFE ASSURANCE SAMPLE PAPER 1 EXAM
QUESTIONS AND ANSWER
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 - correct answer A
1.1 - Main types of personal financial needs
,QFA
The primary financial need of a client in their 60s is
likely to be:
A savings
B investment
C protection
D loans - correct answer B
1.3 - Life Cycle
Factfinding is also known as:
A suitability
B know the client
C appropriateness
D treating the client fairly - correct answer B
1.5 - Benefits of financial planning
,QFA
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 - correct answer C
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
, QFA
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 - correct 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
D (iii) only - correct answer D
