LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A couple in their early sixties ask which A&S risk is most likely to affect their retirement plan. The analysis should highlight:
- AAccidental death coverage, since accidents are the leading cause of death at their age
- BTravel medical coverage, since retirees spend more time away from their home province
- CDisability income replacement, since both are still earning and would lose that income
- Long-term care and health costs, which arise after employment income has already ended
Correct answer: D) Long-term care and health costs, which arise after employment income has already ended
Their earning years are almost over, so the exposure shifts from replacing income to funding care and uninsured health costs out of accumulated retirement capital.
Why the other options are wrong
- AIllness, not accident, dominates mortality and morbidity at this age.
- BTravel coverage matters for trips but is not the dominant lifetime exposure.
- CWith a short remaining working life, income replacement is a diminishing need.
Exam tip
As retirement nears, the risk moves from income to care.
Common mistake
Recommending long-term disability coverage to a client about to retire.
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.