LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks whether the need for A&S coverage changes when she has children. The agent should explain:
- AOnly the life insurance need changes, since children affect the death benefit calculation only
- BIt disappears, because a parent's disability is covered by government family benefit programs
- It grows: expenses rise, dependence on her income increases, and health costs add up
- DIt stays the same, because children do not change the amount of income actually at risk
Correct answer: C) It grows: expenses rise, dependence on her income increases, and health costs add up
Life-cycle changes affect all needs. Children increase income replacement need, CI need (caregiving costs) and health expense need.
Why the other options are wrong
- AA&S needs change as much as life needs.
- BGovernment family benefits are small; children make protection more important.
- DDependants increase every living-benefit need.
Exam tip
Life events (children, mortgage, business) trigger a full needs review.
Common mistake
Reviewing only life insurance after a child is born.
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.