LLQP Life Insurance · Component 1.1 · 35% of the exam
A client is a member of a professional association that offers group term life. Compared with an employer plan, the main difference for the needs analysis is that:
- AAssociation coverage cannot exceed one year, so the client must reapply annually with fresh evidence
- Association coverage usually continues while membership and premiums are maintained, but rates rise with age bands
- CAssociation coverage is always cheaper and better, since the association negotiates rates on behalf of all members
- DAssociation plans never require evidence of insurability, whatever amount the member applies for
Correct answer: B) Association coverage usually continues while membership and premiums are maintained, but rates rise with age bands
Association group plans are portable within the association but are usually priced in five-year age bands that climb steeply later in life, and they may require evidence above a threshold. The agent compares this with individual coverage over the client's expected need period.
Why the other options are wrong
- AAssociation coverage is renewable while membership continues.
- CAssociation plans are not automatically cheaper; age-banded pricing rises steeply later.
- DAssociation plans commonly require evidence above a threshold amount.
Exam tip
Compare association group rates across the whole period of need, not just today's band.
Common mistake
Treating association group life as equivalent to employer group life.
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.