LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks how much CI to buy. The agent's approach should be:
- ASet it equal to the life insurance face amount so the two policies match each other
- BUse ten times annual income, the standard multiple applied to living-benefit products
- Identify the uses, cost each one, subtract resources, and fit the total to budget
- DApply for the insurer's maximum amount so that no future increase will ever be needed
Correct answer: C) Identify the uses, cost each one, subtract resources, and fit the total to budget
CI is sized to uses, not a multiple of income. Common outcomes: one to two years of income or the mortgage balance. Insurer maximums and premiums bound the answer.
Why the other options are wrong
- ALife and CI needs are sized differently.
- BMultiples of income are a life insurance shortcut, not a CI method.
- DThe maximum ignores both need and budget.
Exam tip
CI amount = sum of costed uses − resources, bounded by budget and limits.
Common mistake
Setting the CI amount equal to the life insurance amount.
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.