LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks what a critical illness benefit is typically used for. The most accurate answer is:
- Whatever the client chooses, such as time off, home changes, treatment or business support
- BOnly for medical treatment costs that the provincial plan refuses to fund
- CRepaying the mortgage, since the benefit is assigned to the lender at diagnosis
- DReplacing income for the balance of the client's working life after the diagnosis
Correct answer: A) Whatever the client chooses, such as time off, home changes, treatment or business support
The benefit is paid as unrestricted capital, which is what makes it useful for the mix of choices and costs that follow a serious diagnosis.
Why the other options are wrong
- BNothing confines the payment to medical bills.
- CAssignment to a lender is an option, not a feature of the product.
- DIt pays a single lump sum, not a continuing income.
Exam tip
Critical illness pays capital with no strings attached.
Common mistake
Describing critical illness as a medical expense product.
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.