LLQP Life Insurance · Component 2.2 · 30% of the exam
A client wants his family to receive a monthly amount rather than a lump sum. A family income benefit rider provides:
- Aa monthly amount payable only while the surviving children remain minors
- Ba lump sum that the beneficiary must reinvest to produce a monthly income
- Can income for the surviving spouse's whole lifetime, however long that may be
- a monthly income for the remainder of a stated period from the date of death
Correct answer: D) a monthly income for the remainder of a stated period from the date of death
The rider pays a monthly amount from the insured's death until the end of the rider's term, so the benefit declines in total value as the term runs. It is often paired with a lump sum policy.
Why the other options are wrong
- APayment is tied to the rider's term rather than the children's ages.
- BThe rider itself pays the income rather than a lump sum.
- CThe income runs to the end of the rider's term, not for life.
Exam tip
Family income riders pay to the end of the term, so the value declines.
Common mistake
Describing a family income rider as a lifetime income for the survivor.
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.