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IFSE Institute LLQP Exam - Topic 2 Question 18 Discussion

Pat, a 30-year-old youth worker, meets with his life insurance agent to discuss disability insurancecoverage. After a thorough analysis of Pat's needs, the agent recommends a policy with a $1,500 a month benefit (50% of Pat's current salary) payable to age 65 after a 31-day waiting period. Pat has put enough money away to cover 6 months' worth of expenses, if necessary, but he would prefer not to dip into his savings. He applies for the policy, with the expectation that the premium will be $75 a month. He already thinks this is pricey and would not want to pay any more than that. Some time later, underwriting informs the agent that the policy has been approved, but with a 125% premium rating due to Pat being overweight. Which one of the following options would make the most sense to reduce the premium to a level Pat would accept without compromising too much on his coverage?
A) Extend the waiting period.
B) Reduce the monthly benefit.
C) Extend the benefit period.
D) Have Pat reapply for coverage after losing the excess weight.

IFSE Institute LLQP Exam - Topic 2 Question 18 Discussion

Actual exam question for IFSE Institute's LLQP exam
Question #: 18
Topic #: 2
[All LLQP Questions]

Pat, a 30-year-old youth worker, meets with his life insurance agent to discuss disability insurancecoverage. After a thorough analysis of Pat's needs, the agent recommends a policy with a $1,500 a month benefit (50% of Pat's current salary) payable to age 65 after a 31-day waiting period. Pat has put enough money away to cover 6 months' worth of expenses, if necessary, but he would prefer not to dip into his savings. He applies for the policy, with the expectation that the premium will be $75 a month. He already thinks this is pricey and would not want to pay any more than that. Some time later, underwriting informs the agent that the policy has been approved, but with a 125% premium rating due to Pat being overweight. Which one of the following options would make the most sense to reduce the premium to a level Pat would accept without compromising too much on his coverage?

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Suggested Answer: A

by Luisa at Jul 11, 2025, 09:18 AM

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Marci
9 months ago
Wait, why would he extend the waiting period? That seems risky.
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Felix
10 months ago
I think reducing the monthly benefit is the best way to go!
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Hector
10 months ago
Sounds like Pat needs to cut back on that premium somehow.
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Jacklyn
10 months ago
Why not just lose the weight first? That could help a lot!
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Shalon
10 months ago
Totally agree with Sarah, less benefit means lower cost!
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Rima
10 months ago
I recall a similar question where reapplying after losing weight was suggested, but that seems risky if Pat needs coverage now.
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William
11 months ago
I think extending the benefit period might not help much with the premium, but it could provide more security in the long run.
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Alexis
11 months ago
Reducing the monthly benefit seems like a straightforward way to lower the premium, but I wonder if $1,500 is already too low for his needs.
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Mickie
11 months ago
I remember discussing how extending the waiting period could lower premiums, but I'm not sure if that's the best option for Pat since he wants to avoid using his savings.
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Corinne
11 months ago
I think I've got a handle on this. The key is finding the right balance between premium cost and coverage level. Based on the information provided, option B - reducing the monthly benefit - seems like the best compromise. I'll make sure to walk through the math carefully on the exam.
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Lavonna
11 months ago
This is a tricky one. I'd want to make sure I fully understand the implications of each option before deciding. Maybe I'd start by trying to estimate the premium difference for each choice to see which one best fits Pat's budget without sacrificing too much coverage.
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Kate
12 months ago
Okay, let's see. Extending the waiting period could lower the premium, but that might not be ideal for Pat's situation. Reducing the monthly benefit could also work, but that's not great if he really needs that level of coverage. I'm leaning towards option B, but I'll double-check the details.
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Keneth
12 months ago
Hmm, I'm a little unsure about this one. There are a few different factors to weigh here, like Pat's budget, the coverage he needs, and the impact of the premium rating. I'll have to think it through carefully.
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Elina
1 year ago
This seems like a pretty straightforward question. I think I'd start by looking at the options and considering how each one would impact the premium.
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Elli
1 year ago
I think reducing the monthly benefit could also help lower the premium.
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Dominque
1 year ago
I agree with Derick, extending the waiting period seems like a reasonable compromise.
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Derick
1 year ago
I disagree, I believe extending the waiting period would be a better choice.
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Jani
1 year ago
You know, if I were Pat, I'd be tempted to just say 'screw it' and get a gym membership instead of the insurance. At least that way, he'd be healthier and save some cash!
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Leontine
1 year ago
Dude, this guy's gotta lose some weight! That's the real issue here. Just reapply after he slims down a bit.
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Samira
1 year ago
A) Extend the waiting period.
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Joana
1 year ago
Extending the benefit period? I don't know, that seems like it could just complicate things further. Keep it simple, I say!
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King
1 year ago
Reducing the monthly benefit is a bit of a bummer, but if it's the only way to keep the premium down, it might be worth it.
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Dortha
1 year ago
C) Extend the benefit period.
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Nidia
1 year ago
B) Reduce the monthly benefit.
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Marylou
1 year ago
A) Extend the waiting period.
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Mitsue
1 year ago
I think Pat should go with option D.
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Emile
1 year ago
Hmm, extending the waiting period seems like the most logical choice here. It's a good way to lower the premium without losing too much coverage.
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Socorro
1 year ago
Makes sense. It's a practical solution to keep the premium at a level that Pat is comfortable with.
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King
1 year ago
I agree. It's a smart way to reduce costs without sacrificing too much of the coverage.
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Jolanda
1 year ago
That's a good point. Extending the waiting period could definitely help lower the premium.
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