LLQP Accident & Sickness · Component 1.3 · 35% of the exam
Which statement about the relationship between disability insurance and life insurance needs is correct?
- AThey are the same need, measured once and covered adequately by either product
- BDisability insurance replaces life insurance, since it pays while the client is still alive
- CLife insurance replaces DI, since a large permanent policy can be borrowed against
- They address different events; disability can also endanger the life policy's premiums
Correct answer: D) They address different events; disability can also endanger the life policy's premiums
The needs are distinct but linked: disability can jeopardize the life policy (waiver of premium addresses this) and consume assets meant for survivors. A complete analysis considers both.
Why the other options are wrong
- AOne pays on death, the other during life.
- BDI pays nothing at death.
- CLife insurance pays nothing during disability.
Exam tip
Disability and death are separate needs; waiver of premium bridges them.
Common mistake
Treating a large life policy as living-benefit protection.
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.