LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client with limited budget can afford either a 30-day or a 90-day waiting period on the same benefit to age 65, or a 30-day waiting period with a 2-year benefit. The best articulation of need is:
- ATake the 30-day waiting period with the two-year benefit, since most claims end within a year
- Keep the to-65 benefit period and accept the 90-day wait, funded from savings
- CTake the 30-day waiting period to 65 and reduce the monthly benefit until it fits the budget
- DDefer buying anything until the budget can support the 30-day wait to age 65
Correct answer: B) Keep the to-65 benefit period and accept the 90-day wait, funded from savings
Insurance should cover the losses the client cannot absorb. Ninety days of expenses is survivable; thirty years without income is not. The curriculum expects prioritization of needs.
Why the other options are wrong
- AA two-year benefit leaves the catastrophic risk uncovered.
- CCutting the amount under-insures every month of a claim.
- DSome coverage of the long-term risk is far better than none.
Exam tip
Self-insure the small, frequent loss; insure the large, rare one.
Common mistake
Optimizing for the first weeks of a claim instead of the decades.
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.