LLQP Life Insurance · Component 2.2 · 30% of the exam
A spouse rider on the client's policy provides:
- Term coverage on the spouse's life under the client's contract, usually smaller and often convertible, at lower cost
- BJoint ownership of the policy by both spouses, so either can exercise the owner's rights
- CFull needs-based coverage on the spouse, sized by the same analysis used for the client and underwritten in the same way
- DA survivor income paid to the spouse for life if the client dies first
Correct answer: A) Term coverage on the spouse's life under the client's contract, usually smaller and often convertible, at lower cost
Spouse riders are a convenient, economical way to add coverage on the second life. The limitation is that the rider usually ends if the base policy ends or the couple divorces, so a spouse with a substantial need of their own may be better served by an individual policy.
Why the other options are wrong
- BA rider does not create joint ownership.
- CSpouse riders are usually modest, not full needs-based coverage.
- DSpouse riders pay a lump sum, not survivor income.
Exam tip
Spouse riders are economical but end with the base policy or on divorce; a spouse with a large need of their own should have an individual policy.
Common mistake
Using a spouse rider to cover a spouse's full income-replacement 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.