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17 Cards in this Set
- Front
- Back
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Where a claim is made on a term as she rents policy the benefits payable always free of income tax. True or false? |
True- term assurance have no investment elements so proceeds are payed tax-free. |
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What is the main benefit of a convertible term assurance plan? |
Allows conversion of some or all of the plans to a different type of plan, at a later date, without the life assured having to provide evidence of their state of health. |
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Benefit of Term Assurance: |
A decreasing term assurance will pay benefits only if the insured dies within the policy term. |
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What is a whole of life policy? |
It is designed to provide protection rather than investment. |
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Duncan and Alice, who are married, are taking out a whole of life plan to provide for payment of inheritance tax liabilities on their deaths. The policy would normally be set up in which of the following ways? |
Transfers between husband and wife are free of IHT, so any liability generally arises on second death. A plan being set up to provide the funds to pay IHT would be set up on a joint life second death basis. |
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What is the main advantage of writing a life assurance policy in a trust: |
'Ring Fence' The proceeds outside the individuals Estate |
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Which type of whole of life policy offers a fixed level of life cover at outset that may be increased by the addition of bonuses? |
With-Profits whole of Life plan has a certain level of life cover at outset which can be increased at bonuses are added during the term. |
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What other types of life assurance is combined with a with-profits plan in a low-cost, whole-of-market plan? |
A low-cost whole-of-life plan combines With-Profits with a decreasing term Assurance. |
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If a policy benefits from 'waiver of premium', What does it mean? |
Waiver of premium cover means that premiums are not payable (IE they are waived) in the event that the insured is unable to work due to accident or sickness. |
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Low-cost endowment policies? |
The policy is not guaranteed to repay the mortgage in full at the end of the term. |
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What is a Gift inter Vivos? |
A 7 year term insurance policy designed to protect potentially exempt transfer (PET) After 3 years it then reduced 20% a year until the end of the year 6, by which the policy stops. |
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What is family income benefit? |
A form of decreasing term assurance policy, with the insured amount expressed as a guarantee tax-free income payable each year from agreed term. If the ensure a person dies, that income is paid from that point until the end of the term. As the total amount payable reduces each year, the insured survives, The total payment reduces each year, hence the decreasing in term comparison |
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What is a whole of life insurance policy With-Profits? |
Fixed minimum level of cover to which bonuses are added to reflect the investment profits. |
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What is a whole of life insurance policy unitised with-profits? |
Issues you knits with a guarantee that you the prices will either never fall below a certain level or will increase for at least a stated minimum amount. |
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What is a whole of life insurance policy; Non-profit? |
Fixed level of Life Assurance return for payment of a fixed premium. |
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What is a whole of life insurance policy: unit-Linked? |
Unit issued the plan holder. In minimum level cover is set at outset which is increased when the value the units held rises above the amount. |
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What is a characteristic of unitized with profits endowment? |
Unit values cannot fall |
