CEFS FINAL EXAM COMPLETE TEST.
WHAT IS THE 3 POINTS WE MUST MAKE FOR THIS QUESTION :Discuss if Annie and Jim should consider
taking out a life assurance policy for the mortgage amount. Please use 'Topic 4' of your study text for
additional guidance in answering this question. - CORRECT ANSWER Reasons for them to get a life
assurance policy = 1 :if one of them were to become unable to work then they wont be able to meet
mortgage repayments on one income alone .
reasons to not get a life assurance policy = 1 .they wont be able to afford it , even if they could it would
decrease their discretionary expenditure which would limit there ability to go on holiday
2= there is not single breadwinner in the family as they both earn similar incomes which is one reason
why a life assurance policy may not be necessary .
What are the 3 features Annie and Jim must include in this question :Analyse the features that Annie
and Jim should considerer to ensure that their future financial planning is effective. - CORRECT ANSWER
1)make sure there planning is realistic
2)make sure financial planning is flexible
3)financial plan must also be clear , timely and documented .
state one example of where annie and jims financial plan is realistic - CORRECT ANSWER we can see
that Annie and Jim have been realistic as the price of their house that they plan to purchase is 200,000
which is realistic in proportion to their income and expenditure .
state one example of when annie and jims finacnial plan must be flexible - CORRECT ANSWER one
example of where Annie and Jim's financial plan must be flexible is when they have kids .In the case
study it states that Annie and Jim want to have kids as soon as possible .This will increase their
expenditure which therefore means that there financial plan must be flexible in order to take on the
additional expenditure .
state one way Annie and Jim can make their financial plan more timely - CORRECT ANSWER by adding
timescales
WHAT IS THE 3 POINTS WE MUST MAKE FOR THIS QUESTION :Discuss if Annie and Jim should consider
taking out a life assurance policy for the mortgage amount. Please use 'Topic 4' of your study text for
additional guidance in answering this question. - CORRECT ANSWER Reasons for them to get a life
assurance policy = 1 :if one of them were to become unable to work then they wont be able to meet
mortgage repayments on one income alone .
reasons to not get a life assurance policy = 1 .they wont be able to afford it , even if they could it would
decrease their discretionary expenditure which would limit there ability to go on holiday
2= there is not single breadwinner in the family as they both earn similar incomes which is one reason
why a life assurance policy may not be necessary .
What are the 3 features Annie and Jim must include in this question :Analyse the features that Annie
and Jim should considerer to ensure that their future financial planning is effective. - CORRECT ANSWER
1)make sure there planning is realistic
2)make sure financial planning is flexible
3)financial plan must also be clear , timely and documented .
state one example of where annie and jims financial plan is realistic - CORRECT ANSWER we can see
that Annie and Jim have been realistic as the price of their house that they plan to purchase is 200,000
which is realistic in proportion to their income and expenditure .
state one example of when annie and jims finacnial plan must be flexible - CORRECT ANSWER one
example of where Annie and Jim's financial plan must be flexible is when they have kids .In the case
study it states that Annie and Jim want to have kids as soon as possible .This will increase their
expenditure which therefore means that there financial plan must be flexible in order to take on the
additional expenditure .
state one way Annie and Jim can make their financial plan more timely - CORRECT ANSWER by adding
timescales
