LLQP Life Insurance · Component 3.2 · 25% of the exam
Which recommendation would be considered unsuitable on its face?
- ATerm insurance for a 30-year-old with a mortgage and young children, since the need is large and clearly temporary in nature
- BJoint last-to-die coverage for a couple with a deferred capital gains liability that will arise on the second death
- A large universal life policy with maximum deposits for a client with high debt and no savings
- DA child rider on a young parent's policy, providing small coverage on each child with a conversion option
Correct answer: C) A large universal life policy with maximum deposits for a client with high debt and no savings
Over-funding a UL policy while carrying expensive debt and no savings mismatches the client's priorities and cash flow. The other three are textbook matches of product to need.
Why the other options are wrong
- ATerm for a young family with a mortgage is classic suitability.
- BLast-to-die for a second-death tax liability fits exactly.
- DA child rider on a young parent's policy is appropriate and inexpensive.
Exam tip
Suitability includes affordability and priorities, not just product logic.
Common mistake
Recommending accumulation products to clients who should be paying down debt.
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.