LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client's need analysis shows he could manage three months without income but not six. This points to:
- A waiting period of around ninety days, with the benefit beginning when his savings run out
- BA critical illness policy, since the survival period matches the length of his savings
- CAccident-only coverage, since savings can cover any illness that lasts under six months
- DA benefit period of three months, matched to the savings he has available
Correct answer: A) A waiting period of around ninety days, with the benefit beginning when his savings run out
The waiting period is the deductible the client self-funds, so it should be set at the point where personal resources are exhausted rather than at the shortest period available.
Why the other options are wrong
- BA critical illness survival period has nothing to do with the client's savings.
- CIllness is the commonest cause of long disability and cannot be self-funded past the savings.
- DThe benefit period governs how long payments last, not when they start.
Exam tip
Savings set the waiting period; the risk sets the benefit period.
Common mistake
Choosing the shortest waiting period regardless of the client's reserves.
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.