LLQP Accident & Sickness · Component 1.1 · 35% of the exam
The single most important fact for sizing a client's disability income need is:
- Her earned income, since that is what stops when she cannot work
- BHer age, since disability risk and the premium for it both rise with age
- CThe number of policies she already holds, since insurers cap total coverage
- DHer net worth, since savings decide how long she could cope on her own
Correct answer: A) Her earned income, since that is what stops when she cannot work
Disability insurance replaces earned income lost to disability. Net worth and age affect the recommendation and underwriting but the amount is anchored to income. Investment income continues during disability and is not replaced.
Why the other options are wrong
- BAge sets the premium and the benefit period; it does not measure the income at risk.
- CExisting coverage is netted out later; it says nothing about the income at stake.
- DNet worth is a resource that may reduce the need; it is not the basis for sizing it.
Exam tip
Disability need starts from earned income — what actually stops when the client cannot work.
Common mistake
Including investment income in the amount to replace.
What this tests
CISRO competency component 1.1 — 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
- 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?
- Why does the disability needs analysis ask about the client's participation in employer-sponsored savings plans?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.