LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A single client with no dependants and substantial savings asks whether he needs disability insurance. The best response is:
- Yes, probably: with no other earner, a long disability would consume his savings
- BOnly if he carries a mortgage or other debt that would otherwise go unpaid
- CNo, life insurance is the priority for any client who has substantial savings
- DNo, singles have no dependants and therefore no income replacement need at all
Correct answer: A) Yes, probably: with no other earner, a long disability would consume his savings
Singles have the least backup: no spouse income. Savings cushion the waiting period but do not replace 30 years of earnings. DI is arguably more important for singles, life insurance less so.
Why the other options are wrong
- BThe need exists regardless of debt; living expenses continue either way.
- CWith no dependants the life need is small and the disability need is large.
- DSingles are entirely self-reliant and therefore highly exposed.
Exam tip
Single, no dependants: low life need, high disability need.
Common mistake
Applying the life-insurance logic ('no dependants, no need') to disability.
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.