LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client's household expenses include a large monthly contribution to an RESP. During disability, this contribution:
- AIs irrelevant, because education savings are an investment rather than a living expense
- BIs paid by the insurer automatically under the policy's retirement protection rider
- Would likely stop unless the benefit funds it; the client decides whether to protect it
- DMust continue by law, because RESP contributions are a registered commitment to the child
Correct answer: C) Would likely stop unless the benefit funds it; the client decides whether to protect it
Savings goals are part of the standard of living. Whether to protect them is the client's decision, informed by the cost of the coverage needed.
Why the other options are wrong
- ASavings goals are part of the family's plan and standard of living.
- BDI pays cash; how it is used is the client's choice.
- DRESP contributions are voluntary.
Exam tip
Savings goals (RESP, RRSP) are needs the client may choose to protect.
Common mistake
Omitting savings goals from the disability need.
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.