Monthly Archives:November 2019


CII R05 exam: FREE practice questions

Are you revising for the CII’s R05 exam? Know someone who is? Want to test your R05 knowledge? Then read on…..!

We’ve put together 10 multiple choice questions for you as a taster of what you can expect in the R05 exam. This exam has a pass rate of 78% which makes it the easiest CII R0 exam.

That said, you should still expect to be tested on areas such as state benefits, general insurance products such as PMI, long term care and business assurance so just about everyone will still need to brush-up on the more unfamiliar elements of the syllabus.

Click here for the CII R05 exam syllabus. Be aware. The number of questions you will get in the exam are NOT spread equally across the syllabus.

We’ve helped over 6,000 people prepare for the CII R0 exams over the past 12 months. We don’t sell multiple choice questions but we are here to help as much as we can with your R05 exam.

Now, onto the practice questions. See how well you do on these. You’ll find the answers at the end of the post.

R05 questions

All figures are based on the 2023/24 tax year.

1. John is worried about providing an income for his family if he is unable to work through accident or sickness over the long term. Which protection policy would be MOST suitable?

A. Personal accident and sickness

B. Accident, sickness and unemployment cover

C. Critical illness

D. Income protection insurance

2. Usef, age 68, recently had a stroke and he now needs supervision. Which state benefit will he qualify for as a result?

A. Attendance allowance

B. Personal independence payment

C. Carers’ allowance

D. Disability living allowance

3. A couple want to arrange life cover to meet an inheritance tax liability whilst keeping costs to a minimum. If they write the policy under a suitable trust, the BEST way of arranging the whole of life policy is:

A. as two single life of another policies

B. on a joint life first death

C. on a joint life second death

D. as two single life policies

4. What tax is paid on the proceeds of an offshore life policy on someone who is a UK resident when it is surrendered?

A. Income tax is paid on the full surrender value

B. Income tax is paid on the amount the value exceeds the premium(s) paid

C. CGT on the full surrender value

D. CGT on the amount the value exceeds the premium(s) paid

5. Ami has just received a £1/2 million lifetime transfer from her father. What type of life policy would be MOST suitable to pay the potential inheritance tax liability?

A. Whole of life

B. Level term

C. Decreasing term

D. Gift inter vivos

6.  Here is a description of a benefit provided by an income protection insurance policy: ‘this benefit is paid if someone is unable to return to their previous work, but can undertake some lower paid work elsewhere.’  What is the name of this benefit?

A. Proportionate benefit

B. Recurrence benefit

C. Rehabilitation benefit

D. Waiver of premium benefit

7. The typical survival period on a critical illness policy is:

A. 4 days

B. 28 days

C. 6 months

D. 12 months

8. Mo is concerned about the care and medical treatment he will receive if he loses mental capacity.  His current health is deteriorating, but he still has capacity. What type of new arrangement, if any, would be suitable?

A. Power of attorney

B. Enduring power of attorney    

C. Lasting power of attorney

D. None. His deteriorating health means that it is too late to make any arrangement

9.  Mavis is seeking funding from her local authority in Birmingham towards the cost of her long term care.  Her total income is £200 per week and she has assets of £20,000.  What would the local authority assess her weekly income as being (before the personal expenses allowance is deducted)?

A. £200

B. £212

C. £223

D. £224 

10. With partnership protection, which legal arrangement would NOT normally qualify for IHT business relief?

A. Automatic accrual

B. Buy and sell

C. Cross-option agreement

D. shareholder trust

R05 Resources

Here are some other tips and information that you might find useful:

Click here for tips on how to approach the R05 exam

Preparation tips and exam technique for R05. Click here

Answers: 1: D; 2: A; 3: C; 4: B; 5: D; 6: A; 7: B; 8: C; 9: C; 10: B.

Remember, good preparation is the key. Hope that you found this useful. Until the next time

Ian Patterson

Author of the current CF8, J07, and AF6 CII study texts and ex-examiner