LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client's spouse has left the workforce to raise children. The couple asks what happens if the spouse suffers a serious illness. The need identified is:
- ANone, since a non-earning spouse's illness has no financial effect on the household
- BDisability insurance on the spouse, sized to the replacement value of household services
- CBusiness overhead coverage, since a household with children runs like a small business
- Critical illness coverage on the spouse, since the earner may need leave and child care
Correct answer: D) Critical illness coverage on the spouse, since the earner may need leave and child care
A non-earning spouse's illness has financial consequences for the earner. CI can be issued without earned income, unlike DI, making it the fitting product.
Why the other options are wrong
- AThe earner's leave and the cost of care would strain the family's finances.
- BDI requires earned income; insurers will not issue it to a non-earner.
- CBOE is a business product for fixed business costs.
Exam tip
Non-earning spouse: CI is available; DI generally is not.
Common mistake
Leaving the non-earning spouse uninsured for living benefits.
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.