Financial protection is best summed up with the old adage: plan for the best and prepare for the worst. However grand our wider financial aims and goals, everything can quickly come crashing down if disaster strikes. Good financial protection underpins every other aspect of financial planning by ensuring that, in the event of death or illness, we protect the goals and people that matter to us most.

In this unit, we explore the main forms of financial protection applicable to consumers as well as some of the factors in business insurance. In doing so, we address key considerations for any financial planner:

• policy types;
• establishing the appropriate sum assured;
• underwriting;
• claims;
• the use of trusts; and
• the taxation of benefits.

We also provide context by considering relevant market factors and looking at State benefits – the availability of which is often cited as a reason why consumers fail to take out adequate protection.

Building a successful career in personal finance

Financial Protection (R05) is a core unit for the Diploma in Regulated Financial Planning which meets the FCA’s qualification requirements for retail investment advisers. This unit is relevant for paraplanners, technical consultants and those in financial planning support roles. It is also relevant for those seeking additional CII credits towards completion of the Diploma in Financial Planning. those who do not hold additional CII credits counting towards completion of the Diploma in Financial Planning.

Purpose

At the end of this unit, candidates should be able to demonstrate an understanding of and ability to analyse:

• the purpose and scope of financial protection products and how they interact with State benefits;
• the main features and functions of the different types of contracts and how they are arranged in order to meet the individual client’s protection needs;
• the main protection needs of businesses.

Assessment

• 1 hour exam
• 50 multiple choice questions
• The nominal pass mark is 70%
• The 2022 pass rate for this unit was 78%

Units treated as equivalent

Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of credits.

If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.

Find out more about credit awards for equivalent units

Revision aids available

The revision aids available for this unit are listed below. Find out more details.

• Key Facts Booklet
• Audio Revision
• Knowledge Checker
• E-learn

Note for purchasing revision aids: please make sure you do not already have the revision aid(s) as part of any Enrolment plus purchase.   

Study material - editions available

2022-23 edition (applicable to exams sat 01 Sep 2022 to 31 Aug 2023)