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30 Cards in this Set
- Front
- Back
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DDB Ltd has made a claim on a company held life policy. How is this treated in relation to taxation? |
The profit is treated as income of the company and subject to corporation tax |
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For tax relief to be given on premiums for a key person policy, the maximum term of the policy should generally be for what time period? |
5 years |
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Systemis Ltd pays the premiums for a group personal accident and sickness insurance for their employees. How is this treated in relation to the company’s taxation? |
It is treated as an allowable business expense |
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Belinda, a single parent, has 2 children aged 8 and 10, has taken out a personal accident and sickness policy for herself. If she wanted to extend the cover of the policy to cover her children, what restriction might there be? |
The cover may be restricted to accidents only |
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Neil’s critical illness policy has been set up on a reviewable basis. Which of the following is the new rate based on when the reviews are undertaken? |
Claims experience of the insurer |
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Arlene has started a second occupation on a part-time basis, three years after taking out her income protection policy. How will this change be treated by most providers? |
It will mean that the cover will cease |
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The life fund of a UK insurer is liable for capital gains tax at which of the following rates on its capital gains? |
20% |
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Where a claim is made under a mortgaged life policy, who will the life office make the payment to? |
The mortgagee |
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Craig has had a life assurance policy assigned to him. By when should he notify the life office of the assignment? |
As soon as possible |
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Sandra has built up benefits under SERPS and retired in March 2014. The benefits she receives will be: |
20% of her average middle band earnings over her entire working life |
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People’s confidence in long-term financial arrangements is undermined by which of the following factors? |
Inflation |
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Systemis Ltd pays the premiums for a group personal accident and sickness insurance for their employees. How is this treated in relation to the company’s taxation? |
It is treated as an allowable business expense |
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Belinda, a single parent, has 2 children aged 8 and 10, has taken out a personal accident and sickness policy for herself. If she wanted to extend the cover of the policy to cover her children, what restriction might there be? |
The cover may be restricted to accidents only |
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Employment and support Allowance typically affects income protection needs for those unable to work due to accident or sickness |
If they are otherwise self-employed, or otherwise employed but then only after 28 weeks off work. |
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To what extent, if at all are costs of life cover taken into account by reduction in yield figures of a whole of life policy? |
They are excluded. |
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Lexis purchased a life assurance policy that she placed in a flexible trust for the benefit of her daughter, Belima. The trustee is lexis husband, cedric. Who had equitable ownership of the policy? |
Belinda only. |
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Ralph's total annual income is £130,000. His early surrender of an onshore life assurance policy causes a chargeable event. If the total amount of premiums paid is £30,000 and the surrender value is £38,5000,what is the tax liability? |
£1,700 |
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Two business partners each require an individual income protection insurance policy. What is the position with regard to tax relief on the premiums? |
No tax relief is available. |
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Pablo and polly are married and each require stand - alone critical illness insurance cover. What is usually the key advantage of opting for two single life policies, rather than one joint life policy? |
It provides an extra potential payment. |
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A client Ruth long term care requirements effected an immediate care insurance policy without capital guarantee. He died two years later. What death benefit, if any, will usually be payable in these circumstances? |
Nothing. |
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What would be a drawback of a traditional with profits endowment? |
The level of the early surrender values. |
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The state second pension (S2P) is calculated using what percentages? |
40% and 10% |
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Which of the following factors would not be taken into account when making any changes at a review period of a reviewable policy? |
Changes in the life assured's state of health. |
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Sheila. Aged 58, has just taken out an endowment assurance policy. The policy will remain within the qualifying rules if the sum assured on death is at least what percentage of the total premiums payable if the policy ran for its full term? |
69% 2yr over 55??? Check. |
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Peter made a PET of £240,000 in September 2012. Which of the following statements correctly explains the inheritance tax implications on his estate if he died in March 2014 assuming no annual allowances were available? |
The nil rate band available against his estate would be reduced to £85,000 |
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In calculating the maximum benefits payable under an income protection policy, some companies include which of the following definition of "total benefits? |
State incapacity benefits and sick pay from an employer. |
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Under a group income protection insurance scheme, free cover relates to the cover provided |
Without any evidence of health being required. |
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With regard to critical illness,the main advantage of having severity- based cover is that |
More conditions can be covered. |
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Private medical insurance premiums are paid by the employer for an employee who is higher rate taxpayer. What is the employee's tax position with regard to these premiums? |
The employee must pay income tax at his marginal rate. |
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What is the essential features of a capitation scheme relating to dental plan? |
It is a means for people to budget for their dental costs. |
