LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client can afford either a shorter waiting period or a longer benefit period, but not both. The agent should generally recommend:
- The longer benefit period, since the catastrophic risk is a disability that never ends
- BNeither, and instead reduce the monthly benefit so both features can be afforded
- CSplitting the budget so that both features are improved by a modest amount
- DThe shorter waiting period, since the first months of a disability are the hardest to fund
Correct answer: A) The longer benefit period, since the catastrophic risk is a disability that never ends
Insurance is bought for the loss the household cannot absorb, and a long disability is far more damaging than the first few months that savings can usually bridge.
Why the other options are wrong
- BCutting the benefit undermines the purpose of the coverage.
- CA split leaves the catastrophic exposure underfunded.
- DEarly months are the part a client is most likely to be able to self-fund.
Exam tip
Buy the catastrophe, self-fund the inconvenience.
Common mistake
Spending the budget on an early start date.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.