LLQP Life Insurance · Component 2.2 · 30% of the exam
A guaranteed insurability benefit rider is generally NOT available or useful for:
- AA 25-year-old professional at the start of a career, whose income and responsibilities are expected to grow
- BA young parent whose family is likely to grow and whose mortgage will increase with a larger home
- CA client planning to start a business, who will need key person and buy-sell coverage once the business is established
- An applicant near the rider's maximum issue age, or one who already has all the coverage they will ever need
Correct answer: D) An applicant near the rider's maximum issue age, or one who already has all the coverage they will ever need
GIB has issue-age limits and option dates that run to a maximum age. For older applicants or those with no future need, the rider offers little. For young clients with growing needs it is valuable.
Why the other options are wrong
- AA young professional is a classic GIB candidate.
- BA young parent's needs will grow.
- CA future business owner will need more coverage.
Exam tip
GIB suits young clients with rising needs; check issue-age limits.
Common mistake
Adding GIB to a policy for a client with no foreseeable increase in need.
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.