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Life Insurance M5 Flashcards

6 cards from real CMFAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Life Insurance M5 flashcards as text

  1. What is the role of the Life Insurance Association (LIA) of Singapore?

    Answer: To represent and promote the interests of the life insurance industry

    LIA represents the life insurance industry in Singapore, setting professional standards, promoting best practices, and liaising with regulators.

  2. What is a policy loan?

    Answer: A loan taken against the cash value of a life insurance policy

    A policy loan allows the policyholder to borrow money from the insurer using the cash value of their life insurance policy as collateral.

  3. What is the cooling-off period under the Financial Advisers Act?

    Answer: 14 calendar days

    Under the Financial Advisers Act, there is a 14-calendar-day cooling-off period for certain investment products sold by financial advisers.

  4. What happens when a life insurance policyholder stops paying premiums?

    Answer: The policy may lapse or become paid-up depending on its type and cash value

    If premiums stop, the policy enters a grace period. After that, it may lapse or, if it has sufficient cash value, be converted to a paid-up policy with reduced benefits.

  5. What is an annuity?

    Answer: A financial product that provides regular payments for life or a specified period

    An annuity provides a stream of regular payments to the annuitant, either for life or for a fixed period, typically used for retirement income.

  6. What is the CPF Life scheme?

    Answer: A national annuity scheme that provides lifelong monthly payouts to Singaporeans

    CPF Life (Lifelong Income For the Elderly) is a national annuity scheme that provides Singaporeans with monthly payouts for life starting from their payout eligibility age.

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. ibf.org.sg — Eligibility, fees, score release, registration, retake policy, exam format, passing score, time limit · verified Oct 2026