LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client who is 30 asks whether a two-year benefit period is 'good enough' since most disabilities are short. The agent should explain:
- Most claims are short, but the damage is in the long ones, and at 30 she has 35 years at risk
- BYes, two years is enough, because claim statistics show the average disability lasts under a year
- CBenefit periods matter little, because the waiting period is what drives both premium and protection
- DNo, the benefit period must be lifetime for anyone under 40 to be adequately protected against illness
Correct answer: A) Most claims are short, but the damage is in the long ones, and at 30 she has 35 years at risk
The average claim length hides the tail. Insurance exists for the tail. A young client has the largest exposure to a long claim and the cheapest access to a to-65 benefit period.
Why the other options are wrong
- BA two-year period leaves the largest exposure open.
- CThe benefit period is central to the need; it defines the catastrophic case.
- DTo 65 is the standard; lifetime coverage is rare and expensive.
Exam tip
Young clients: the largest tail exposure and the cheapest to-65 coverage.
Common mistake
Using average claim duration to justify a short benefit period.
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.