LLQP Accident & Sickness · Component 2.2 · 30% of the exam
For a 62-year-old client with three years to retirement, which DI riders are generally poor value?
- AAll riders, since a client three years from retirement should buy the cheapest base policy available
- BNone, since every rider adds protection and the premium is spread over only three remaining years
- FPO, COLA and lifetime benefits, while an own-occupation definition may still be worthwhile
- DOnly the own-occupation rider, since a client near retirement is unlikely to change occupations
Correct answer: C) FPO, COLA and lifetime benefits, while an own-occupation definition may still be worthwhile
Rider value depends on the horizon. With three years of exposure, growth and inflation riders add little. The core benefit and definition still matter.
Why the other options are wrong
- AThe definition rider can still be worthwhile.
- BSeveral riders are clearly poor value over a three-year horizon.
- DOwn-occupation is the rider most likely to retain value.
Exam tip
Short horizon → skip FPO, COLA, lifetime; keep definition quality.
Common mistake
Recommending a full rider package to a client near retirement.
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.