LLQP Life Insurance · Component 2.1 · 30% of the exam
A group plan provides 'dependent life' coverage. This means:
- ACoverage for the member's parents, who are treated as dependants once they reach a stated age
- BCoverage that depends on the member's salary, so the amount rises and falls with each pay adjustment the employer makes during the year
- CCoverage only for dependants over 65, since younger dependants are covered under the member's own benefit
- Coverage on the member's dependants' lives, usually a modest fixed amount for spouse and children, paid to the member
Correct answer: D) Coverage on the member's dependants' lives, usually a modest fixed amount for spouse and children, paid to the member
Dependent life pays the member a small benefit on the death of a spouse or child, typically to cover final expenses. It is distinct from the member's own coverage (often a multiple of salary) and from optional life, which the member buys voluntarily.
Why the other options are wrong
- ADependent life covers spouse and children, not parents.
- BSalary-based coverage is the member's own life benefit.
- CThere is no such age restriction.
Exam tip
Dependent life: small fixed amounts on the spouse and children, paid to the member, for final expenses.
Common mistake
Counting dependent life as meaningful coverage on the spouse.
What this tests
CISRO competency component 2.1 — 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.