LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client's need analysis identifies both an income replacement gap and a long-term care exposure, with a limited budget. The agent should:
- Fund the income replacement gap first and document the care need for a later review
- BSplit the budget evenly between the two needs, so each receives equal protection
- CRecommend neither, since a budget that cannot meet both needs cannot produce a suitable plan
- DFund the long-term care need first, since care costs are larger than lost income
Correct answer: A) Fund the income replacement gap first and document the care need for a later review
The exposure that would hit first and hardest during the earning years takes priority, with the deferred need recorded, quantified and revisited rather than forgotten.
Why the other options are wrong
- BAn even split leaves the pressing need underfunded without resolving the other.
- CPartial coverage of the most severe exposure is far better than none.
- DCare costs arise decades later, while an income loss would begin immediately.
Exam tip
Fund the nearest and most severe exposure first; document the rest.
Common mistake
Spreading a limited budget thinly across every identified 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.