LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks how long the disability benefit should last. The agent should explain that the benefit period should reflect:
- The period income would be needed — typically to 65 for the catastrophic case
- BThe premium budget, since the benefit period is the easiest lever to shorten for savings
- CThe waiting period, since insurers require the two periods to be set equal to each other
- DTwo years, since that is the standard period insurers offer on most individual policies
Correct answer: A) The period income would be needed — typically to 65 for the catastrophic case
Benefit period choice is a needs decision. The catastrophic, permanent disability is what insurance exists for; a to-65 benefit period covers it. Cost trade-offs are then made on waiting period and riders.
Why the other options are wrong
- BBudget is a constraint, not the basis for the benefit period.
- CThe waiting period is when benefits start; the benefit period is how long they last.
- DTwo years covers common short claims but leaves the serious ones unfunded.
Exam tip
Prioritize the benefit period (to 65) over a short waiting period when budget is limited.
Common mistake
Buying a short benefit period with a short waiting period — covering the small risk and not the large one.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.