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IFSE Institute LLQP Exam - Topic 1 Question 27 Discussion

Dorothy, age 36, is an architect. She runs her own office with the help of two assistants. She owns her own condo, has an active social life, and travels regularly for pleasure. She has a net annual income of approximately $125,000, once all the business, rent, salary, and car expenses have been paid. Dorothy is well aware of the significant financial problems that she would face for any absences from the office due to illness or disability. What are Dorothy's main protection needs in this respect?
D) Protect 60% of her net annual income and business overhead expenses.
A) Protect 60% of her net annual income.
B) Protect 100% of her net annual income.
C) Protect business overhead expenses.

IFSE Institute LLQP Exam - Topic 1 Question 27 Discussion

Actual exam question for IFSE Institute's LLQP exam
Question #: 27
Topic #: 1
[All LLQP Questions]

Dorothy, age 36, is an architect. She runs her own office with the help of two assistants. She owns her own condo, has an active social life, and travels regularly for pleasure. She has a net annual income of approximately $125,000, once all the business, rent, salary, and car expenses have been paid. Dorothy is well aware of the significant financial problems that she would face for any absences from the office due to illness or disability. What are Dorothy's main protection needs in this respect?

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Suggested Answer: D

by Krissy at Apr 13, 2026, 02:46 AM

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Raelene
3 days ago
Business overhead expenses are crucial too, don’t forget those!
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Cristina
8 days ago
Wait, does she really need to protect that much? Sounds excessive.
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Sarina
2 months ago
I think she should go for 100% coverage. Better safe than sorry!
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Pamella
2 months ago
Protecting 60% of her income seems reasonable.
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Lashaun
3 months ago
I think the best option might be D, since it covers both her income and the business overhead. That way, she wouldn't have to worry about her assistants or office expenses if she couldn't work.
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Clorinda
3 months ago
I’m a bit confused about whether she should protect 100% of her income or just 60%. I think it depends on her lifestyle and expenses, but I can't recall the exact details.
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Evangelina
3 months ago
I feel like we practiced a similar question where we had to consider both income and business expenses. Protecting overhead expenses seems really important for someone like Dorothy.
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Phung
3 months ago
I remember discussing income protection in class, and I think protecting 60% of her income might be a common recommendation, but I'm not entirely sure.
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