LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client's needs analysis supports both disability and critical illness coverage, but the budget covers only one. The agent should ordinarily:
- ARecommend neither until the client's budget can accommodate both recommendations in full
- BRecommend half of each, so that both exposures receive some measure of protection
- Recommend disability coverage first, and record the critical illness need for a later review
- DRecommend critical illness first, since a lump sum gives the client the greatest flexibility
Correct answer: C) Recommend disability coverage first, and record the critical illness need for a later review
Disability is the more probable and more financially damaging event during the working years, so it takes precedence when only one can be funded.
Why the other options are wrong
- ALeaving the client with nothing is worse than covering the main risk.
- BHalving both leaves the primary exposure inadequately covered.
- DCritical illness pays only on listed conditions and does not replace income.
Exam tip
Income first; the lump sum follows when the budget allows.
Common mistake
Selling the more attractive product rather than the more necessary one.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.