LLQP Life Insurance · Component 2.2 · 30% of the exam
A disabled client asks whether her waiver of premium covers the riders as well as the base policy. The agent should:
- Aconfirm that a waiver always extends to every rider attached to the contract
- check the wording, since some waivers cover only the base policy premium
- Ctell her riders are never covered by a waiver of premium benefit
- Dadvise cancelling the riders so the waiver applies to a smaller amount
Correct answer: B) check the wording, since some waivers cover only the base policy premium
Coverage of riders varies between contracts. If the waiver applies only to the base premium, the client must keep paying for the riders or lose them, which she needs to know at once.
Why the other options are wrong
- ANot every waiver extends to the attached riders.
- CMany waivers do cover the riders as well.
- DCancelling valuable riders during a disability would be harmful.
Exam tip
Check whether a waiver covers the riders or only the base premium.
Common mistake
Assuming a waiver suspends every payment on the contract.
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.