Cards to look at right before exam

Fact-find sections

• personal info: basic info to assess eligibility

• goals: SMART goals (specific, measurable, actionable, real and time bound)

• hard facts: info on income expenses for affordability analysis

• needs analysis: stress-test goals, discuss with client perceived and actual needs

• planning considerations: shaping appropriate solutions, FACTOR model (flexibility, access, cost, tax, options, risk/reward)

• risk profile: assess attitude to risk

• advised vs non-advised: all the above is very detailed or is all specific to product

Consumer duty four key areas

• products and services

• price and value

• consumer understanding

• consumer support

What is maximum cover

Fixed prems for set period then revised, mostly life cover but some investment, least expensive at start but gets expensive

What is standard cover

No need for prems to increase as investment element subsidises future prems, prems static it growth at determined level

What is guaranteed cover

Guaranteed cover for guaranteed prems, no investment, most expensive initially and no cash-in value

Accident, sickness and unemployment insurance features

• monthly/weekly benefit

• max period 1-2y

• deferred periods 30 or 60d

• pre-existing is excluded, dismissal

• set percentage (75%) and max amount (2,500pm)

• some lump sum benefits loss sight or limb

Basic/budget plans

• costs of accom, drugs, dressings and fees

• NOT outpatient treatments, home nursing or private ambulances

• may be limits to cover per year

Mid-range plans

• more items, longer claim periods and higher limits.

• wider choice of hospitals and maybe outpatient treatments

• includes consultant fees, diagnostic tests and physiotherapy to a set limit

• maybe psychiatric cover

Comprehensive plans

• claim periods longer, higher limits and wider choice

• home nursing and private ambulances covered

• covers cost of parent stay in hospital with ill child

• alternative meds, dental treatment, travel abroad and cash payments for nights as NHS patient

Life cover buy-back

• first claim basis

• after can be difficult to regain cover

• restricted life cover without underwriting after two years from CIC claim

What are key features of MPPI

• monthly/annual prems

• deferred period 60 days off work

• term 12mo - 12mo or 2y

• 100-125% of mortgage and associated costs, or % of income up to £2k pm

• tax free

• can be portable

What are the t&cs of MPPI

• 18-64y

• exclusions for pre-existing med

• 16h pw for last 6mo (working)

• not vol redundancy/dismissal

• self-employed only bankruptcy

• can cancel subject to min notice period

How do you calculate current value of a bond

nominal value x current price

What are some property investment vehicles

• listed property companies

• insurance company property funds

• property unit trusts and open-ended investment companies

What does an REIT need to have preferential tax treatment

• 75% gross profits generated by the ring-fenced business

• ring-fenced business must account for at least 75% gross assets of REIT at beginning of accounting period

• interest on borrowing must be at least 125% of rental profits

When must someone receive a KIID

in good time

Defined benefit scheme elements

• trustees must be appointed

• set a normal retirement age, don’t have to retire to take benefits

• employer can differentiate between categories of employee/level of benefits

• must be an employer contribution into the scheme, may for employees

• employees can contribute additional

• pension income and PCLS

Death-in-service benefits

Usually uncrystallised funds at date of death, tax free under 75, excess over LSDBA taxed at recipients marginal rate if income

Non-eligible jobholder

MUST be provided info on how to opt-in if between 16-21 or SPA-74 earning >£10k or 16-74 earning between £6,240-£10k

Entitled worker

between 16-74 earning less than £6,240 MUST be provided info on how to opt in, employers NOT obliged to meet min contribution requirements

Lifestyling assumes member will

• retire on predetermined date

• take PCLS

• purchase annuity with remaining funds