LLQP Life Insurance · Component 2.2 · 30% of the exam
A guaranteed insurability benefit rider usually allows additional purchases:
- AOnly at renewal of the base policy, when the insurer reassesses the whole contract
- BOnly after a medical exam confirms that the insured remains insurable at standard rates
- At specified option dates and life events, up to a stated amount per option, until a maximum age
- DAt any time and in any amount, since the insurer has guaranteed the insured's future insurability
Correct answer: C) At specified option dates and life events, up to a stated amount per option, until a maximum age
GIB riders schedule the option dates and cap each purchase. Missing an option date usually forfeits it. The rider suits young clients whose needs will grow and who want to protect future insurability.
Why the other options are wrong
- AOptions are tied to dates and events, not renewals.
- BThe whole point of GIB is no medical evidence.
- DGIB options are limited to scheduled dates and amounts.
Exam tip
GIB: scheduled option dates and life events, capped amounts, no evidence, until a maximum age. Missed options are usually forfeited.
Common mistake
Assuming GIB allows unlimited increases whenever the client wishes.
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.