LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks whether his need for disability coverage ends at retirement. The agent should explain:
- Yes for income replacement, but the need for care funding and health coverage continues
- BNo, it continues for life because a disability can strike at any age and savings can run out
- CIt never existed, because retirement savings can replace lost income at any stage of life
- DIt ends at 40, when most people have accumulated enough savings to self-insure comfortably
Correct answer: A) Yes for income replacement, but the need for care funding and health coverage continues
Needs change over the life cycle. DI is a working-years product; LTC and health expenses are retirement-years needs. The analysis should note the transition.
Why the other options are wrong
- BIncome replacement has no purpose after earnings end.
- CWorking clients have a real DI need that savings rarely cover.
- DThe need runs through the whole of working life.
Exam tip
Working years: DI, CI. Retirement: LTC, health expenses.
Common mistake
Failing to plan the transition from DI to LTC as the client ages.
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.