CISI Paraplanning FPA Practice Questions - CISI Certificate in Paraplanning - Financial Planning & Advice Exam - CISI Paraplanning FPA Practice Questions - CISI Certificate in Paraplanning

Question 1

What is the primary purpose of a decreasing term assurance policy in financial protection planning?

To provide a tax-free lump sum that increases each year in line with inflation To cover a repayment mortgage where the capital balance outstanding reduces over time To pay a guaranteed income stream to surviving dependents for the rest of their lives To build up a tax-efficient investment element alongside life cover

Correct Answer:

To cover a repayment mortgage where the capital balance outstanding reduces over time

Question 2

In Income Protection Insurance (IPI), what does the term 'deferred period' represent?

The period of time between policy application and policy inception The duration for which benefit payments will continue to be paid while disabled The waiting period between the start of incapacity and when benefit payments commence The period during which the insurer cannot cancel the policy for non-payment

Correct Answer:

The waiting period between the start of incapacity and when benefit payments commence

Question 3

What is the key difference between guaranteed premiums and reviewable premiums on a Critical Illness policy?

Guaranteed premiums stay fixed for the life of the policy, while reviewable premiums can be adjusted by the insurer based on claim experience Guaranteed premiums are adjusted annually for inflation, while reviewable premiums remain flat Reviewable premiums guarantee a payout regardless of pre-existing conditions, while guaranteed premiums do not Guaranteed premiums are eligible for tax relief, while reviewable premiums are paid out of net income

Correct Answer:

Guaranteed premiums stay fixed for the life of the policy, while reviewable premiums can be adjusted by the insurer based on claim experience

Question 4

Under a standard individual life assurance policy, when is a Terminal Illness benefit payable?

Upon diagnosis of any specified critical illness such as cancer or heart attack When the life assured is diagnosed with an incurable illness and expected to die within 12 months When the life assured attains age 75 without making any previous claims Only after the life assured has been incapacitated and unable to work for 6 consecutive months

Correct Answer:

When the life assured is diagnosed with an incurable illness and expected to die within 12 months

Question 5

What is the maximum duration for which Statutory Sick Pay (SSP) is payable by an employer in the UK?

12 weeks 26 weeks 28 weeks 52 weeks

Correct Answer:

28 weeks

Question 1

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About this Exam

Prepare with the CISI Paraplanning FPA Practice Questions - CISI Certificate in Paraplanning - Financial Planning & Advice Exam practice quiz. This question bank includes 100 questions covering pension, allowance, policy, income, and annual. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CISI Paraplanning FPA Practice Questions - CISI Certificate in Paraplanning - Financial Planning & Advice Exam

This practice set contains 100 questions from the matching question bank and focuses on pension, allowance, policy, income, and annual. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CISI Paraplanning FPA Practice Questions - CISI Certificate in Paraplanning - Financial Planning & Advice Exam

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