QFA Life Assurance study guide
QFA Life Assurance · Work through your exam, one topic at a time.
The QFA Certificate in Professional Financial Advice is a professional qualification offered by LIA, an educational and professional association for individuals working in the financial services industry. LIA describes itself as the Centre of Excellence for the Education and Development of Finance Professionals, and its programmes are offered in partnership with Atlantic Technological University Sligo, ranging from Level 7 to Level 9 on the National Framework of Qualifications. The QFA Life Assurance study guide has 8 sections and about 2,099 words.
01Life Assurance
Life assurance pays a lump sum on death (whole of life) or on death within a fixed term (term assurance). Candidates must distinguish term assurance (pure protection, no maturity value), whole of life (guaranteed payout eventually, higher cost), endowment (pays on death or survival to maturity), and unit-linked versus with-profits contracts.
275 words, about 1 min02Pensions
Understand the two main structures: defined benefit (DB) (promised income based on salary/service) and defined contribution (DC) (pot built from contributions and investment returns). Know state pension basics, auto-enrolment , tax relief on contributions, annual allowance and lifetime allowance concepts, and the pension commencement lump sum (often 25% tax-free).
246 words, about 1 min03Savings & Investments
Candidates must know the main asset classes (cash, bonds/gilts, equities, property), the risk/return relationship, and the concept of diversification . Understand collective investments (unit trusts, OEICs, investment trusts), ISAs , and the difference between income and accumulation units.
223 words, about 1 min04Personal General Insurance
Understand indemnity , utmost good faith , insurable interest , proximate cause , and contribution/subrogation . Know household and motor cover structures, excesses , sum insured vs.
210 words, about 1 min05Commercial General Insurance
Commercial lines test property , liability (public, products, employers'), business interruption , and motor fleet . Know sum insured , declaration-linked policies, coinsurance/average , and claims-made versus occurrence liability cover.
204 words, about 1 min06Private Medical Insurance & Associated Insurances
PMI reimburses eligible medical treatment costs. Know underwriting approaches (full medical underwriting, moratorium, medical history disregarded), excesses , co-payments , no-claims discounts , and exclusions (pre-existing conditions, chronic conditions, cosmetic treatment).
243 words, about 1 min07Housing Loans
Understand mortgage structures: repayment (capital + interest) versus interest-only (capital repaid at end via a vehicle). Know LTV , loan-to-income , affordability , fixed vs variable rates, early repayment charges , and arrangement fees .
215 words, about 1 min08Home Reversion Agreements & Associated Insurances
A home reversion plan sells all or part of the home to a provider for a lump sum or income, while the seller retains a lifetime lease to live there rent-free. Understand equity release broadly: lifetime mortgages versus home reversion .
483 words, about 2 min