LLQP Life Insurance · Component 1.1 · 35% of the exam
A client says she wants coverage to 'pay off the mortgage and nothing else'. The agent should:
- ASell double the mortgage balance, since the family will need money for living costs as well as the debt
- Respect the goal but complete the analysis anyway, since a paid-off house does not feed a family, and document any decline
- CSell exactly the mortgage amount as requested, since the client has stated her need clearly
- DRefuse to sell mortgage coverage, since coverage tied to a single debt is never a suitable recommendation for a client with a family
Correct answer: B) Respect the goal but complete the analysis anyway, since a paid-off house does not feed a family, and document any decline
The client's stated want is the starting point, not the end. A house with no income to run it is a common outcome of mortgage-only thinking. The agent's duty is to show the full picture and let the client choose, documenting the choice.
Why the other options are wrong
- ADoubling arbitrarily is not needs-based.
- CSelling without analysis leaves a foreseeable gap unexamined.
- DRefusing is not the answer; mortgage coverage is a legitimate need.
Exam tip
Stated wants define the conversation's start; the needs analysis defines the recommendation.
Common mistake
Confusing the client's first request with their need.
What this tests
CISRO competency component 1.1 — 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.