LLQP Accident & Sickness · Component 1.3 · 35% of the exam
In articulating a client's critical illness need, the agent typically considers:
- AThe life insurance amount, since CI is conventionally set at the same face amount
- Mortgage relief, uncovered treatment, a caregiving spouse's lost income and recovery time
- CThe deductibles and co-insurance the client would owe under the group health plan
- DFuneral and final expenses in case the covered illness eventually proves fatal
Correct answer: B) Mortgage relief, uncovered treatment, a caregiving spouse's lost income and recovery time
CI sizing is use-driven. Common uses: pay down the mortgage for a year or two, cover treatment not funded provincially, replace a spouse's income, adapt the home. The amount follows from the uses the client prioritizes.
Why the other options are wrong
- ALife and CI needs are sized differently; CI follows its uses.
- CHealth-plan cost sharing is a minor item next to the costs CI addresses.
- DFuneral costs are a life insurance item.
Exam tip
Size CI from intended uses: debt, treatment, spouse's income, modifications, recovery.
Common mistake
Picking a round CI amount without linking it to uses.
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.