LLQP Life Insurance · Component 1.3 · 35% of the exam
A married couple both work and each earns enough to support the household alone. Their only child has a disability requiring lifelong care. The dominant need identified is:
- ANone, since each spouse can support the household alone and the child's care is covered by provincial programs
- Lifetime support for the child, which survives both parents and calls for permanent coverage to a trust
- CMortgage payoff, since clearing the home is the most important step in protecting the family's stability
- DIncome replacement for each spouse, since that is the core need in every household where two people are earning an income
Correct answer: B) Lifetime support for the child, which survives both parents and calls for permanent coverage to a trust
With two self-sufficient earners, income replacement is modest; the child's lifelong need is the driver. Joint last-to-die coverage funds the trust when the second parent dies, which is when the child loses all support.
Why the other options are wrong
- AThe child's need is substantial and permanent.
- CThe mortgage is manageable on either income.
- DEach spouse can support the household; income replacement is secondary.
Exam tip
Identify the need that survives longest and match the product to its timing — here the second death.
Common mistake
Defaulting to income replacement when the real need is a dependant's lifetime care.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.