LLQP Life Insurance · Component 2.2 · 30% of the exam
A client's critical illness rider lists some conditions as qualifying for a partial benefit. This means that:
- a stated percentage is paid for those conditions, usually without ending the coverage
- Bthe benefit is paid only if two listed conditions occur within the same year
- Cthe insurer decides the percentage after reviewing the claimant's financial need
- Dthe full benefit is paid and the policy then terminates immediately
Correct answer: A) a stated percentage is paid for those conditions, usually without ending the coverage
Partial benefits cover early stage or less severe conditions at a fraction of the amount, often leaving the remaining coverage in force. The list and the percentages vary between insurers and must be read.
Why the other options are wrong
- BPartial benefits do not require two separate conditions.
- CThe percentage is set in the contract, not by financial need.
- DA partial payment is by definition less than the full benefit.
Exam tip
Partial benefits differ by insurer; compare the lists and the percentages.
Common mistake
Describing critical illness coverage as a single all-or-nothing payment.
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.