LLQP Life Insurance · Component 1.2 · 35% of the exam
A client points to her group accidental death coverage as evidence she is well protected. The agent should explain that:
- Athe amount can be added to the life insurance total because both pay on death
- Baccidental death coverage pays double whatever the cause of the death happens to be
- Cthe coverage replaces the need for any individual life insurance while she is employed
- it pays only for death by accident, which is a small share of all deaths
Correct answer: D) it pays only for death by accident, which is a small share of all deaths
Most deaths result from illness rather than accident, so such coverage rarely pays when a family actually needs it. It should be noted separately and not counted toward the amount of life protection in place.
Why the other options are wrong
- AIt cannot be added to life coverage because it pays only in limited circumstances.
- BThe benefit depends entirely on the cause being accidental.
- CIt provides no protection against the most likely causes of death.
Exam tip
Accidental death coverage is not life insurance and should be listed separately.
Common mistake
Adding accidental death amounts into total coverage in force.
What this tests
CISRO competency component 1.2 — 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.