LLQP Life Insurance · Component 2.2 · 30% of the exam
The waiting period on a waiver of premium rider means:
- Premiums are waived only after the insured has been totally disabled for the stated period; premiums paid during the wait are usually refunded
- BThe insurer waits to pay the death benefit until the disability has continued for the stated period
- CThere is no coverage during the wait, so a death in that period is not paid
- DThe rider cannot be added for the first year, since the insurer needs time to confirm the insured is healthy before extending the waiver
Correct answer: A) Premiums are waived only after the insured has been totally disabled for the stated period; premiums paid during the wait are usually refunded
Most waiver riders require a continuous period of disability (commonly several months) before the waiver takes effect, and the definition of disability matters. The base policy stays in force throughout, and premiums paid during the waiting period are typically refunded once the claim is approved.
Why the other options are wrong
- BThe waiting period has nothing to do with the death benefit.
- CThe policy stays in force during the wait.
- DThe waiting period refers to disability duration, not when the rider can be added.
Exam tip
Waiver waiting period: continuous disability for the stated months first; premiums paid during the wait are usually refunded on approval.
Common mistake
Assuming premiums stop the day the insured becomes disabled.
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.