LLQP Life Insurance · Component 2.2 · 30% of the exam
A client's guaranteed insurability rider allows purchases at set ages and on certain life events. The typical qualifying events are:
- marriage, the birth or adoption of a child, and similar family milestones
- Ba promotion at work or an increase in the client's annual salary
- Ca change of address or the purchase of a new motor vehicle
- Dany event the client considers significant enough to justify more coverage
Correct answer: A) marriage, the birth or adoption of a child, and similar family milestones
Option dates are usually tied to specified ages and to family events that increase responsibility. The event must be notified within the period the rider allows, so the deadline matters as much as the event.
Why the other options are wrong
- BIncome changes are not usually listed as qualifying events.
- COrdinary purchases and moves do not trigger an option.
- DThe rider lists the events; the client does not choose them.
Exam tip
Option events are listed in the rider and must be claimed within the window.
Common mistake
Missing a life event option because the window was not diarized.
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.