LLQP Life Insurance · Component 2.1 · 30% of the exam
The survivor income benefit sometimes found in group plans pays:
- AThe member's salary for one month after death, to bridge the family until the lump sum is paid
- BA lump sum to the estate equal to a multiple of salary, in the same way as ordinary group life coverage
- A monthly income to the surviving spouse, and sometimes children, for a period or for life, instead of or with a lump sum
- DA benefit to the employer to cover the cost of recruiting and training a replacement for the deceased member over the following year
Correct answer: C) A monthly income to the surviving spouse, and sometimes children, for a period or for life, instead of or with a lump sum
Survivor income benefits deliver the death benefit as an income stream, which some sponsors prefer for members' families. The agent assessing a client's group coverage should know whether the plan pays a lump sum, income, or both.
Why the other options are wrong
- AOne month's salary is not what survivor income benefits provide.
- BA lump sum to the estate is ordinary group life.
- DThe benefit goes to the family, not the employer.
Exam tip
Some group plans pay the death benefit as income to the family rather than a lump sum; know which form a client's plan uses.
Common mistake
Assuming all group life pays a single lump sum.
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.