LLQP Life Insurance · Component 1.3 · 35% of the exam
Which factor most often makes the same family's calculated need change between reviews?
- AChanges in the agent servicing the family from one year to the next
- BChanges in the insurer's name following a merger or acquisition
- CChanges in the weather and the general state of the economy
- Changes in the family's dependants, debts, income and existing coverage
Correct answer: D) Changes in the family's dependants, debts, income and existing coverage
The need is a function of the family's situation. Every change in dependants, debt, income or resources moves it. That is why the curriculum lists periodic review as a service obligation.
Why the other options are wrong
- AA change of agent does not change the need.
- BInsurer names are irrelevant.
- CWeather is irrelevant.
Exam tip
The need is a moving target; review whenever the inputs move.
Common mistake
Treating the original needs analysis as permanent.
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.