All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A representative advises a client on an endowment policy. How is this product classified?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) As short-term insurance.
- b) As a banking deposit.
- c) As long-term insurance.Correct
- d) As a foreign-currency exchange product.
Why this is the answer
An endowment is a life product paying a lump sum after a set term or on death, so it is a long-term insurance product. It is not short-term cover, a deposit, or a forex product.
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