LLQP Life Insurance · Component 2.2 · 30% of the exam
A client asks about a rider that would release policy money if she needed long-term care. Such a rider generally:
- Apays an unlimited amount for as long as care is required by the insured
- Breplaces provincial health coverage for the period the benefit is being paid
- Ccovers only care provided in a hospital and never care at home
- advances part of the death benefit when care criteria are met, reducing what is paid at death
Correct answer: D) advances part of the death benefit when care criteria are met, reducing what is paid at death
These riders accelerate a portion of the death benefit when the insured cannot perform stated activities of daily living. The amount and the conditions vary, and the family receives less at death.
Why the other options are wrong
- AThe amount is limited by the death benefit and the rider's terms.
- BPrivate coverage supplements rather than replaces provincial care.
- CCare at home is commonly covered where the criteria are met.
Exam tip
Care riders accelerate the death benefit against stated care criteria.
Common mistake
Presenting a care rider as unlimited coverage for care costs.
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 Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.