LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Critical illness insurance pays:
- A tax-free lump sum on diagnosis of a covered condition, after the survival period
- BA monthly income for as long as the insured is unable to work because of the covered illness
- CA death benefit to the named beneficiary if the insured dies of a covered condition
- DThe hospital and treatment bills arising from the covered condition, up to a stated maximum
Correct answer: A) A tax-free lump sum on diagnosis of a covered condition, after the survival period
CI is a lump-sum, diagnosis-based product. The three core conditions are cancer, heart attack and stroke; comprehensive plans cover twenty or more.
Why the other options are wrong
- BMonthly income is disability insurance.
- CDeath benefits are life insurance, though some CI riders return premiums at death.
- DHospital bills are extended health, not CI.
Exam tip
CI: lump sum, on diagnosis, after survival, no use restriction, generally tax-free.
Common mistake
Describing CI as income replacement.
What this tests
CISRO competency component 2.1 — 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.