LLQP Accident & Sickness · Component 1.1 · 35% of the exam
Why does the disability needs analysis ask about the client's participation in employer-sponsored savings plans?
- ABecause those plans count as unearned income that offsets the disability benefit
- Because contributions stop during a long disability, so retirement becomes a need
- CBecause the agent must confirm the client has not exceeded the RRSP contribution limit
- DBecause the plan balances are used to calculate the client's CPP disability benefit
Correct answer: B) Because contributions stop during a long disability, so retirement becomes a need
The curriculum lists participation in employer-sponsored registered and non-registered plans. A long disability interrupts retirement saving; some DI policies offer a retirement protection benefit for that reason.
Why the other options are wrong
- ASavings plan contributions are not income and are not offset against the benefit.
- CContribution limits are a tax matter, not a disability needs question.
- DCPP disability is calculated from CPP contributions, not from employer plans.
Exam tip
A long disability stops saving as well as earning; note the retirement effect.
Common mistake
Sizing DI only to living expenses and ignoring lost retirement contributions.
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
- 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.