CII R05 Cheat Sheet 2026

The 30 highest-yield CII R05 facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the maximum benefit typically payable under an individual income protection policy? → Up to 60% of pre-incapacity gross earnings, less any state benefits and other income
2. A decreasing term assurance policy is most commonly used to cover which type of debt? → Repayment mortgage
3. What is the role of the 'trustee' in a life assurance trust? → To legally hold the trust property and administer it for the benefit of the beneficiaries
4. Which life assurance policy is designed to pay out on both death AND on survival to the end of the policy term? → Endowment policy
5. A married couple take out a joint life second death policy. What type of trust would be most appropriate? → Split trust
6. What triggers a claim under a long-term care insurance policy? → Being unable to perform a specified number of Activities of Daily Living (ADLs)
7. What is the primary reason critical illness claims are sometimes declined? → The condition does not meet the specific policy definition of that illness
8. What is the key distinguishing feature of a whole of life assurance policy? → It guarantees a payout because it covers the entire lifetime of the insured
9. What is the tax treatment of a group critical illness benefit paid to an employee under an employer-paid scheme? → The benefit is taxed as employment income
10. Statutory Sick Pay (SSP) is paid by the employer for a maximum of: → 28 weeks
11. An over-50s plan is a type of whole of life policy that typically: → Offers guaranteed acceptance with no medical underwriting
12. An immediate needs annuity pays its income directly to a registered care provider. What is the tax advantage of this arrangement? → The income paid directly to a registered care provider is free of income tax
13. What is the minimum level of employer contribution required under auto-enrolment (from April 2019 onwards)? → 3% employer, 5% employee total
14. A convertible term assurance policy gives the policyholder the right to: → Convert to a whole of life or endowment policy without further medical evidence
15. What is a 'joint life first death' policy? → A policy that covers two lives and pays out on the first death of either insured
16. Under what circumstances are premiums paid on a personal income protection policy tax deductible? → Never — personal income protection premiums are not tax deductible
17. What is the primary reason for writing a life assurance policy in trust? → To ensure proceeds are paid outside the estate, avoiding probate and potential IHT
18. What is the 'deferred period' in an income protection policy? → The waiting period between the start of incapacity and when benefit payments begin
19. If a life assurance policy is not written in trust and the policyholder dies, what happens to the proceeds? → They form part of the deceased's estate and may be subject to inheritance tax
20. An employer takes out a group income protection policy for employees. What is the typical maximum benefit level as a percentage of salary? → Up to 75% of gross salary including employer pension and NI contributions
21. How are benefits from a personally held income protection (permanent health insurance) policy taxed when paid to the policyholder? → Benefits are paid free of income tax
22. Which body is the primary regulator of insurance and financial advice in the UK? → Financial Conduct Authority (FCA)
23. Which of the following UK state benefits is designed to provide financial support to individuals who are unable to work due to illness or disability? → Employment and Support Allowance (ESA)
24. What is 'cascade benefit' in a group income protection scheme? → Where the cost of long-term claimants is spread (or 'cascaded') across the group scheme
25. The state benefit system provides for 'waiting days' before Statutory Sick Pay is payable. How many waiting days apply? → 3 qualifying days
26. Which of the following is a potential disadvantage of placing a life assurance policy into a discretionary trust? → The settlor loses control over the distribution of the proceeds
27. A 35-year-old non-smoker purchases critical illness cover with a 30-year term. Which factor would most significantly increase the premium? → Adding waiver of premium
28. What is a 'pre-funded' long-term care plan? → A plan taken out in advance (typically in working life) to fund future care needs
29. Under HMRC guidance, key person insurance premiums are generally allowable as a business expense only when: → The sole purpose of the policy is revenue protection rather than a capital purpose
30. An insurer discovers that a policyholder made a deliberate misrepresentation on their application. Under the Consumer Insurance Act 2012, the insurer can: → Avoid the contract, refuse the claim, and retain all premiums paid