LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client asks whether his age affects the cost of disability insurance. The agent should explain that:
- AOccupation sets the premium; age matters only for choosing the benefit period
- BAge has no effect because the risk of disability is flat until age 65, when coverage ends in any case
- Premiums rise with age at issue, so buying early locks a lower non-cancellable premium
- DOlder applicants pay less because their benefit period to 65 is shorter
Correct answer: C) Premiums rise with age at issue, so buying early locks a lower non-cancellable premium
Age is a primary DI pricing factor. Buying young secures a lower level premium for the policy's life under a non-cancellable contract.
Why the other options are wrong
- AOccupation matters too, but age is a primary DI pricing factor.
- BDisability risk rises steadily with age.
- DOlder applicants pay more per unit of benefit despite the shorter period.
Exam tip
DI premium: age, occupation class, benefit, waiting and benefit periods, definition, riders.
Common mistake
Telling a young client to wait until they 'need it'.
What this tests
CISRO competency component 1.1 — 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.