LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client has a spouse and children and expects to inherit a large sum in a few years. In the A&S needs analysis the inheritance should be:
- AUsed to size a critical illness policy that will be purchased when it arrives
- BCounted at its full expected value, since it will be available to fund a disability
- Treated as uncertain and not relied on to reduce today's disability protection
- DCounted as a current resource that lowers the monthly benefit needed now
Correct answer: C) Treated as uncertain and not relied on to reduce today's disability protection
Uncertain future money is not a resource for a disability that could begin tomorrow. Conservative practice excludes it.
Why the other options are wrong
- AExpected money cannot fund a policy today.
- BInflating an uncertain figure makes the analysis worse, not better.
- DIt is not available today, when a disability could begin.
Exam tip
Resources must be available when the disability starts.
Common mistake
Reducing coverage on the strength of an expected windfall.
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.