LLQP Life Insurance · Component 1.2 · 35% of the exam
A client's existing term policy is renewable to age 85 and convertible to age 70. She is 66 and now needs permanent coverage. The relevant fact is:
- She has until 70 to convert without evidence; after that only renewal to 85, at rising cost, remains
- BShe cannot renew after 70, since the conversion deadline is also the last date on which the policy can continue
- CConversion is automatic at 70, so the policy will become permanent without any action on her part
- DShe can convert until 85, since the renewal age governs how long every option under the policy remains open
Correct answer: A) She has until 70 to convert without evidence; after that only renewal to 85, at rising cost, remains
Renewal and conversion have separate deadlines. Conversion ends at 70; renewal continues to 85. For a permanent need, the four-year conversion window is the decision point.
Why the other options are wrong
- BRenewal continues to 85.
- CConversion is never automatic.
- DThe conversion deadline is 70, not 85.
Exam tip
Track renewal and conversion deadlines separately; they usually differ.
Common mistake
Reading the renewal age as the conversion age.
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.