LLQP Life Insurance · Component 3.2 · 25% of the exam
When presenting a recommendation, why should the agent present at least one alternative?
- ATo increase the premium, since a client who is shown two options tends to choose the more expensive of the two products offered
- BTo confuse the client, so the agent's preferred recommendation seems simpler by comparison
- So the client can see the trade-offs and make an informed choice, which also documents the process
- DBecause regulators require exactly two options to be presented on every recommendation, with the reasons for each
Correct answer: C) So the client can see the trade-offs and make an informed choice, which also documents the process
Alternatives make the recommendation's reasoning visible. A client who chooses between a term layer and permanent coverage understands both. The file then shows the choice was informed.
Why the other options are wrong
- AAlternatives are about suitability, not price.
- BThe purpose is clarity, not confusion.
- DThere is no fixed number of options required.
Exam tip
Recommend one, show the alternative, explain the trade-off, record the choice.
Common mistake
Presenting a single product as if no alternative existed.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Life Insurance module. Written against the published curriculum.
More from component 3
- At policy delivery, the agent should obtain:
- The effective date of a life insurance policy is generally:
- A client's application is approved but he has not paid the first premium when the policy is delivered. The agent should:
- A pre-authorized debit form is part of implementation because:
- During implementation, the agent learns the client wants the policy owned by her corporation instead of personally, as first applied for. The correct step is:
- Which of the following is a legitimate reason an insurer might refuse to issue a policy even after favourable underwriting?
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.