LLQP Life Insurance · Component 1.1 · 35% of the exam
A client asks why the agent needs to know about her existing disability insurance when the discussion is about life insurance.
- ABecause insurers require it, since the application asks about other coverage and the agent must complete it
- BIt is not needed, since disability insurance protects the client while alive and has no bearing on death
- CTo sell her more disability insurance, since a review of existing coverage usually reveals a gap that the agent can then fill with a new policy
- Because disability benefits are a family resource that ends at death, and a full picture prevents gaps and overlaps
Correct answer: D) Because disability benefits are a family resource that ends at death, and a full picture prevents gaps and overlaps
The curriculum lists group or individual disability benefits among the benefits lost upon death. Understanding all coverage also supports a coherent plan across life, disability and critical illness needs.
Why the other options are wrong
- AInsurers do not require the agent to review other coverage; suitability does.
- BDisability coverage is part of the client's protection picture.
- CThe purpose is completeness, not a sale.
Exam tip
A needs analysis inventories all protection — life, disability, critical illness, group — before recommending anything.
Common mistake
Treating each insurance line in isolation.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.