LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks whether her CI need is reduced by her group LTD. The agent should explain:
- ACI replaces LTD entirely, since a lump sum can be invested to produce monthly income
- BYes, fully, since LTD already pays a monthly benefit while she is seriously ill
- Only partly, since LTD replaces income and CI funds the costs of a serious illness
- DLTD covers every illness, so CI adds nothing beyond a one-time lump sum
Correct answer: C) Only partly, since LTD replaces income and CI funds the costs of a serious illness
DI and CI answer different questions. Many CI claimants continue working; many DI claimants have conditions CI does not cover. Articulating needs keeps them distinct.
Why the other options are wrong
- ACI pays once; LTD pays monthly for the duration of a disability.
- BLTD does not fund treatment costs or a spouse's leave.
- DLTD pays only while she cannot work; many CI claimants keep working.
Exam tip
DI = income if unable to work. CI = lump sum on diagnosis. Complementary.
Common mistake
Telling a client with LTD that CI is unnecessary.
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.