IFSE Institute LLQP Exam - Topic 3 Question 16 Discussion

Actual exam question for IFSE Institute's LLQP exam

Question #: 16
Topic #: 3

Alex is meeting with his financial advisor, Shannon, to discuss potential life insurance options. Alex's need for insurance will increase gradually over time due to growth on his investment properties. He would like the mortgages and taxable gains paid off if he were to pass away. Shannon recommends a permanent policy, as Alex's need is long-term, and could extend beyondany period of time a term policy would cover. Alex also wants to add an extra coverage onto this policy as he wants to be provided with additional growth over time he needs.

Which rider would work for Alex?

APaid-up additions rider with restriction

BGuaranteed insurability benefit rider

CTerm insurance rider

DAccidental death rider

Show Suggested Answer

Suggested Answer: A

by Ben at Jun 14, 2025, 06:59 AM

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Stephane

5 months ago

I disagree, a Term insurance rider wouldn’t fit Alex’s long-term needs.

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Willard

5 months ago

The Paid-up additions rider could also be beneficial for growth over time.

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Lea

5 months ago

Totally agree, it allows for future coverage without medical exams!

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Jody

6 months ago

I think the Guaranteed insurability benefit rider is a solid choice for Alex.

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Oren

6 months ago

Wait, can a rider really cover all those gains and mortgages? Sounds too good to be true.

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Teri

6 months ago

I feel like the term insurance rider wouldn't be suitable since Alex's needs are long-term. I lean towards the paid-up additions rider, but I wish I could remember more details about its restrictions.

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Keneth

6 months ago

I practiced a question similar to this, and I think the accidental death rider is more for specific situations. It doesn’t really address Alex's long-term growth needs, right?

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Catherin

6 months ago

I think the guaranteed insurability benefit rider might be a good fit since it allows for additional coverage later on without needing to prove insurability. That sounds like it could help Alex as his needs grow.

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Leonida

7 months ago

I remember studying about riders, but I'm not entirely sure which one would be best for Alex. The paid-up additions rider seems like it could help with growth, but I'm not confident.

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Laurena

7 months ago

The accidental death rider doesn't seem to fit what Kiley is looking for here. I think either the paid-up additions rider or the guaranteed insurability benefit rider would be the better options to consider.

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Jutta

7 months ago

Based on the information provided, I would say the paid-up additions rider is the way to go. It sounds like it would allow Kiley to build up the coverage he needs as his investments grow.

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Eulah

7 months ago

Hmm, I'm a bit confused. It sounds like Kiley wants something that can extend beyond a typical term policy, so the guaranteed insurability benefit rider might be a good choice to give him that flexibility.

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Elvera

7 months ago

The key here is that Kiley wants a policy that can grow over time to cover his increasing insurance needs. I think the paid-up additions rider would be the best option to provide that additional coverage.

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Kiley

7 months ago

This seems like a tricky one. I'll need to carefully consider the details about Kiley's needs and Shannon's recommendation for a permanent policy with additional coverage.

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Edna

10 months ago

The accidental death rider could be a good addition, just in case. You know, just to cover his bases in case he trips over one of those investment properties and takes a tumble.

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Hershel

10 months ago

I agree, it's always good to have that extra coverage in case of unexpected accidents.

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Felix

10 months ago

I think the accidental death rider would be a good choice for Alex, just to be safe.

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Ailene

10 months ago

I see both points, but I think option B provides Alex with the flexibility he needs for his long-term insurance goals.

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Cecilia

10 months ago

I disagree, I believe option A, Paid-up additions rider with restriction, would be more suitable for Alex's needs.

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Graciela

10 months ago

Term insurance rider? Really? That doesn't seem to fit Alex's long-term needs at all. He's better off with a permanent policy.

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Selma

9 months ago

C: Shannon recommended a permanent policy for Alex, so the guaranteed insurability benefit rider might be a better fit.

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Juan

9 months ago

B: I think the paid-up additions rider with restriction would be a good choice for Alex's situation.

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Noe

10 months ago

A: I agree, term insurance rider wouldn't provide the long-term coverage Alex needs.

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India

10 months ago

I think option B, Guaranteed insurability benefit rider, would work best for Alex.

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Lindsey

11 months ago

Hmm, the paid-up additions rider with restriction could work too. That way he can build up cash value in the policy to help with the growing mortgages and taxes.

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Reita

10 months ago

B: Yes, that rider could provide him with the additional growth he needs to cover the mortgages and taxes on his investment properties.

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Lashon

10 months ago

A: I think the paid-up additions rider with restriction would be a good choice for Alex. It can help him build up cash value in the policy over time.

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Oretha

11 months ago

I think the Guaranteed insurability benefit rider would be the best option for Alex. It allows him to increase his coverage over time as his needs grow, which is exactly what he's looking for.

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