LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client's household relies on her income and her husband's; they have two children and a mortgage. If either spouse were disabled long-term, the most likely financial consequence is:
- ANo change, since the other spouse's income continues to arrive each month
- A sustained shortfall that threatens the mortgage, since fixed costs assume two incomes
- CLower expenses, since a disabled spouse no longer commutes or travels for work
- DA net gain, since disability benefits are tax-free and replace lost pay in full while work expenses disappear
Correct answer: B) A sustained shortfall that threatens the mortgage, since fixed costs assume two incomes
The curriculum frames the client's needs around risks associated with loss of livelihood or standard of living. Dual-income households often cannot carry their commitments on one income.
Why the other options are wrong
- ALosing one of two incomes leaves the household's commitments unfunded.
- CExpenses usually rise with disability — care, medication, transportation.
- DBenefits replace only part of income and only if coverage exists.
Exam tip
Two-income households need DI on both earners; each income supports the fixed costs.
Common mistake
Insuring only the higher earner.
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.