CII R05 Critical Illness and Income Protection

Question 1

Which of the following is NOT typically covered by a standard critical illness policy?

Accepted Answer

Broken leg

Answer

Heart attack

Answer

Stroke

Answer

Cancer

Question 2

What does 'activities of daily living' (ADLs) assess in the context of long-term care and some protection policies?

Accepted Answer

The claimant's ability to perform physical tasks such as washing, dressing, and eating

Answer

The claimant's employment history

Answer

The claimant's investment objectives

Answer

The claimant's mortgage repayment ability

Question 3

Under a critical illness policy, what is meant by a 'moratorium period'?

Accepted Answer

The period at the start of the policy during which no claims for pre-existing conditions will be paid

Answer

The period after diagnosis before the lump sum is paid

Answer

The period of time over which premiums are calculated

Answer

The duration of the policy term

Question 4

Which definition of disability requires the policyholder to be unable to perform a specified number of Activities of Daily Living to qualify for benefit?

Accepted Answer

ADL definition

Answer

Own occupation definition

Answer

Any occupation definition

Answer

Suited occupation definition

Question 5

A 35-year-old non-smoker purchases critical illness cover with a 30-year term. Which factor would most significantly increase the premium?

Accepted Answer

Adding waiver of premium

Answer

Choosing a longer deferred period

Answer

Choosing the own occupation definition

Answer

Opting for guaranteed insurability

Question 6

What is the primary reason critical illness claims are sometimes declined?

Accepted Answer

The condition does not meet the specific policy definition of that illness

Answer

The policyholder survives for more than 14 days after diagnosis

Answer

The policyholder fails to pay the first premium

Answer

The sum assured is below £50,000