LLQP- Accident and Sickness
Adam is meeting with his insurance agent Sabrina. Adam is a professional engineer and
belongs to a professional association for engineers. The association includes other
engineers, but they do not work for the same employer. The association is offering group
disability coverage. Adam is already covered under his employer's group disability plan for
60% of his salary, where the employer pays 75% of the premium. Adam would like to
augment his coverage with an individual disability policy or the association for engineer's
group disability policy. Adam earns $80,000 per year and has annual expenses of $60,000 a
year. Identify the recommendation that Sabrina should provide to Adam based on his
situation. - ANS-Adam should obtain an individual policy that is tailored to his needs, so he is
not over-insured.
Amina, age 50, owns a critical illness insurance policy which matures at age 75. She
purchased the policy 20 years ago and has never filed a claim. Amina decides to surrender
the policy as she feels there is no need for coverage anymore. What outcome can be
expected upon policy surrender with regard to refund of premiums? - ANS-She will receive a
refund of premiums only if she had added the return of premium rider to her contract.
Becky is the sole proprietor of a store that supplies arts and crafts supplies. Which of the
following disadvantages is Becky likely to be facing as the owner of a sole proprietorship? -
ANS-Becky's business income will have to be reported in her personal income tax return.
Brittany has a disability insurance policy with a waiting period of four months and a disability
benefit period of two years. Her policy has a recurring disability clause, which states that she
will not be subjected to additional waiting periods if she suffers two or more instances of
disability due to the same cause within six months from the end of the previous disability
period. When she fell ill, Brittany's doctor put her on medical leave for six months. She then
returned to work for three months, but the same illness returned. This time, she was unable
to work for two years.
How many monthly disability benefit payments will Brittany receive in total for these two
disability periods? - ANS-24
Burgess would like to address his insurance needs to mitigate risks if he became disabled.
He arrives at his insurance advisor's office with the following information:
$90,000 in pre-tax employment income
$1,000,000 in his registered retirement savings plan
$300,000 mortgage
$15,000 in his chequing account
No other debt, assets, or income
What is an important consideration that Burgess has overlooked and failed to list, in order to
have a proper preliminary needs analysis done? - ANS-His living expenses
Camille helped her client, Arya, apply for a disability income replacement insurance policy
and a critical illness insurance policy. The application gets approved a few days later and
Camille delivers the policy to Arya. What should Camille do next with regard to her service to
Arya after policy delivery? - ANS-She should be in regular contact with Arya and schedule
regular review appointments, at least once a year.
Adam is meeting with his insurance agent Sabrina. Adam is a professional engineer and
belongs to a professional association for engineers. The association includes other
engineers, but they do not work for the same employer. The association is offering group
disability coverage. Adam is already covered under his employer's group disability plan for
60% of his salary, where the employer pays 75% of the premium. Adam would like to
augment his coverage with an individual disability policy or the association for engineer's
group disability policy. Adam earns $80,000 per year and has annual expenses of $60,000 a
year. Identify the recommendation that Sabrina should provide to Adam based on his
situation. - ANS-Adam should obtain an individual policy that is tailored to his needs, so he is
not over-insured.
Amina, age 50, owns a critical illness insurance policy which matures at age 75. She
purchased the policy 20 years ago and has never filed a claim. Amina decides to surrender
the policy as she feels there is no need for coverage anymore. What outcome can be
expected upon policy surrender with regard to refund of premiums? - ANS-She will receive a
refund of premiums only if she had added the return of premium rider to her contract.
Becky is the sole proprietor of a store that supplies arts and crafts supplies. Which of the
following disadvantages is Becky likely to be facing as the owner of a sole proprietorship? -
ANS-Becky's business income will have to be reported in her personal income tax return.
Brittany has a disability insurance policy with a waiting period of four months and a disability
benefit period of two years. Her policy has a recurring disability clause, which states that she
will not be subjected to additional waiting periods if she suffers two or more instances of
disability due to the same cause within six months from the end of the previous disability
period. When she fell ill, Brittany's doctor put her on medical leave for six months. She then
returned to work for three months, but the same illness returned. This time, she was unable
to work for two years.
How many monthly disability benefit payments will Brittany receive in total for these two
disability periods? - ANS-24
Burgess would like to address his insurance needs to mitigate risks if he became disabled.
He arrives at his insurance advisor's office with the following information:
$90,000 in pre-tax employment income
$1,000,000 in his registered retirement savings plan
$300,000 mortgage
$15,000 in his chequing account
No other debt, assets, or income
What is an important consideration that Burgess has overlooked and failed to list, in order to
have a proper preliminary needs analysis done? - ANS-His living expenses
Camille helped her client, Arya, apply for a disability income replacement insurance policy
and a critical illness insurance policy. The application gets approved a few days later and
Camille delivers the policy to Arya. What should Camille do next with regard to her service to
Arya after policy delivery? - ANS-She should be in regular contact with Arya and schedule
regular review appointments, at least once a year.
