LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client's spouse earns the same income as the client. How does this affect the client's disability need?
- AIt doubles the need, because the household now has two full incomes to protect and each must be replaced in full
- It reduces the need partly, since the spouse's income covers some continuing expenses
- CIt eliminates the need, since one full income can carry the household
- DIt has no effect, because each spouse's disability need is assessed alone
Correct answer: B) It reduces the need partly, since the spouse's income covers some continuing expenses
The financial responsibilities between family members are a listed fact. A second income cushions a disability, but disability often brings extra costs, and the family's standard of living was built on two incomes.
Why the other options are wrong
- AThe client's own need does not grow because the spouse earns.
- COne income rarely covers a two-income household's expenses plus disability costs.
- DFamily financial responsibilities are part of the client's situation and offset part of the need.
Exam tip
Count the spouse's income as a partial resource; the household's expenses reflect both incomes.
Common mistake
Assuming a working spouse makes DI unnecessary.
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.