LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A 'terminal illness' or 'accelerated' benefit within a CI or life policy:
- AIs a disability benefit that pays monthly for as long as the insured cannot work because of the illness
- Advances part of the benefit on diagnosis of a terminal illness with a short life expectancy
- CPays double the face amount if the insured dies of the terminal condition within the survival period
- DPays the beneficiary after death, in the same way as an ordinary life insurance death benefit would
Correct answer: B) Advances part of the benefit on diagnosis of a terminal illness with a short life expectancy
Accelerated benefits provide liquidity for end-of-life needs. In CI contracts, terminal illness may be a covered condition; in life contracts, it is an advance on the death benefit.
Why the other options are wrong
- AIt is illness-triggered, not occupational.
- CIt advances part of the existing benefit; there is no doubling.
- DIt pays while the insured is living.
Exam tip
Terminal illness benefit: advance of the benefit for a short life expectancy.
Common mistake
Confusing terminal illness benefits with CI survival-period rules.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.