LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks why he should consider critical illness coverage when he already has disability insurance. The best explanation is:
- ACritical illness pays a monthly income that continues after the disability benefit period ends
- BDisability insurance excludes illness, so critical illness coverage fills that gap in his protection
- CCritical illness replaces disability coverage, since a serious diagnosis always stops a person working
- Disability pays monthly while he cannot work; critical illness pays a lump sum on diagnosis
Correct answer: D) Disability pays monthly while he cannot work; critical illness pays a lump sum on diagnosis
The two products answer different questions: one replaces interrupted earnings over time, the other provides capital at diagnosis for costs and choices that income replacement does not address.
Why the other options are wrong
- ACritical illness pays a lump sum, not a continuing income.
- BDisability coverage responds to illness as well as accident.
- CMany covered conditions allow a return to work, and the lump sum is paid either way.
Exam tip
Monthly income versus a lump sum at diagnosis.
Common mistake
Presenting critical illness as a substitute for disability coverage.
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.