CII R05 Study Guide 2026

Before a protection policy is concluded, the customer must be provided with appropriate product information — typically a key features document or insurance product information document (IPID) — covering key features, exclusions, costs, and how to claim.

TPD cover within critical illness policies can use either 'own occupation' or 'any occupation' definitions. Own occupation TPD means the claimant cannot perform their specific job, while any occupation means they cannot perform any job suited to their training and experience. The disability must be permanent, and the definition used significantly affects the likelihood of a successful claim.

In a life of another arrangement, the surviving business partner (who owns the policy on the deceased's life) receives the proceeds directly, keeping the money outside the deceased's estate and avoiding probate delays.

Because a cross-option agreement creates options rather than a binding obligation to sell, HMRC is less likely to deny Business Property Relief on the deceased partner's share under s.113 IHTA 1984.

The key distinction is the benefit payment period. Income protection is a long-term product that can pay benefits until the policyholder's selected retirement age (e.g., 65 or 68). ASU policies are short-term, typically limiting payments to 12 or 24 months per claim. ASU may also include unemployment cover, which income protection does not.

PIP helps with the extra costs that arise from living with a long-term health condition or disability. It has two components: a daily living component and a mobility component, each payable at standard or enhanced rates. Crucially, PIP is not means-tested and is payable whether or not the claimant is in work.