LLQP Life Insurance · Component 1.3 · 35% of the exam
A client's job is likely to be eliminated within a year. How should the needs analysis reflect this?
- ARecommend the maximum coverage the group plan allows, so the client is fully insured while the job lasts
- Consider the impact on income and group coverage, and avoid recommendations that depend on either continuing
- CLeave it out of the analysis, since only the client's current income and coverage can be verified
- DDelay all insurance until the client is re-employed, since premiums cannot be budgeted without a known income
Correct answer: B) Consider the impact on income and group coverage, and avoid recommendations that depend on either continuing
The curriculum lists the impact of potential job advancement or job loss. Expected job loss means group life will end and premiums must fit a reduced budget; it also argues for putting individual coverage in place while the client is employed and insurable.
Why the other options are wrong
- AMaximizing group coverage that will end with the job solves nothing.
- CExpected job loss affects income, group coverage and affordability.
- DDelaying leaves the client uninsured and possibly less insurable later.
Exam tip
Job loss on the horizon means group life ends and budgets tighten — secure individual coverage while the client is employed and insurable.
Common mistake
Building a plan around group coverage that is about to disappear.
What this tests
CISRO competency component 1.3 — 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.