IIQE Paper 3 Accelerated Death Benefits 提前支付死亡保險利益 Practice questions

Question 1

Which of the following best describes an accelerated death benefit?

Accepted Answer

Part of the death benefit paid in advance when a specified event occurs during the life insured's lifetime, normally with a matching reduction in the later death benefit

Answer

An extra sum paid on top of the original death benefit when the life insured dies

Answer

Double the death benefit paid when the life insured dies in an accident

Answer

The waiver of premiums falling due while the life insured is disabled

Question 2

Mr Wong has a whole life policy with a sum insured of HK$1,000,000 and an accelerated critical illness benefit. He is diagnosed with a covered illness and receives 40% of the sum insured. He later dies of the illness. Assuming there are no policy loans or other adjustments, what is the death benefit?

Accepted Answer

HK$600,000

Answer

HK$1,000,000

Answer

HK$1,400,000

Answer

Nothing is payable

Question 3

Which of the following is NOT a common condition for payment of a typical critical illness benefit?

Accepted Answer

The life insured submits receipts proving that actual medical costs reach the amount claimed

Answer

The condition meets the policy's definition of the illness

Answer

The life insured survives for the period stated in the policy after diagnosis

Answer

The diagnosis is made after the waiting period stated in the policy

Question 4

Ms Lau's policy includes a critical illness benefit with a 90-day waiting period. On the 45th day after the policy starts, she is diagnosed with a specified cancer that meets the policy definition. She has disclosed all material facts truthfully. Under these terms, which statement is most accurate?

Accepted Answer

The critical illness benefit is generally not payable because the diagnosis falls within the waiting period

Answer

The benefit is payable in full because she disclosed all material facts truthfully

Answer

Half the benefit is paid now and the balance after the waiting period ends

Answer

The benefit is paid automatically after day 90 because the condition meets the policy definition

Question 5

Which of the following may typically trigger a long-term care benefit? (i) The life insured cannot independently perform the specified number of activities of daily living; (ii) the life insured has severe cognitive impairment as specified in the policy; (iii) the life insured reaches retirement age; (iv) the life insured is dismissed by an employer

Accepted Answer

(i) and (ii) only

Answer

(i) only

Answer

(i), (ii) and (iii) only

Answer

All of the above

Question 6

After a stroke, Mr Ho has long been unable to bathe, dress or transfer without help, and he meets the conditions of his policy's LTC benefit. How does this accelerated benefit usually work?

Accepted Answer

It pays a percentage of the sum insured periodically until the policy limit is reached, with amounts paid normally deducted from the death benefit

Answer

It only reimburses his actual hospital charges

Answer

It always pays the whole sum insured at once, with the policy ending immediately

Answer

It only waives future premiums and pays no cash

Question 7

Which of the following best states the main difference between a critical illness benefit and an LTC benefit?

Accepted Answer

A critical illness benefit is usually triggered by diagnosis of a specified illness or a specified procedure, while an LTC benefit is usually triggered by loss of self-care ability or severe cognitive impairment

Answer

An accelerated critical illness benefit does not affect the death benefit, while an accelerated LTC benefit reduces it

Answer

A critical illness benefit applies only to accidental injury, while an LTC benefit applies only to illness

Answer

A critical illness benefit is paid only after the life insured dies, while an LTC benefit is paid during their lifetime

Question 8

Which of the following statements about an accelerated critical illness benefit are correct? (i) The benefit is paid during the life insured's lifetime; (ii) the recipient can generally use the money freely; (iii) the later death benefit is normally reduced; (iv) the sum insured increases automatically after a claim

Accepted Answer

(i), (ii) and (iii) only

Answer

(i) and (ii) only

Answer

(ii) and (iii) only

Answer

All of the above

Accelerated Death Benefits 提前支付死亡保險利益

Critical Illness Benefit 危疾保險利益

Long-Term Care (LTC) Benefit 長期護理利益

Practice