Review a compact LLQP Life Insurance cheat sheet for needs analysis, term and permanent coverage, policy ownership, beneficiaries, replacement, underwriting, servicing, and recommendation traps before Finance Prep practice.
Use this Life Insurance cheat sheet before a module set. The strongest LLQP answer usually starts with the client’s protection need, then matches the policy type, ownership, beneficiary, and servicing step to that need without ignoring affordability or disclosure.
| Item | Life Insurance cue |
|---|---|
| Program | LLQP |
| Module | Life Insurance |
| Common format cue | modular Canadian licensing exam with scenario-based multiple-choice questions |
| Main practice behavior | quantify the protection problem, then select suitable product structure and compliant next action |
| Finance Prep status | live practice available |
| Area | Weight | What to know | Common trap |
|---|---|---|---|
| Needs analysis | 35% | income replacement, debt, dependants, business risk, estate liquidity, existing resources | selecting a policy before identifying the financial loss |
| Product analysis | 30% | term, whole life, universal life, riders, cash values, guarantees, renewability, convertibility | treating all permanent products or riders as interchangeable |
| Recommendation implementation | 25% | disclosure, replacement, application, underwriting, policy delivery, documentation | assuming client consent cures weak suitability evidence |
| In-force service | 10% | beneficiary updates, policy loans, reinstatement, claims, servicing changes | treating post-sale service as an administrative afterthought |
Use this sequence before comparing policy types. LLQP Life Insurance questions often punish product-first thinking: the correct answer usually follows the client’s protection problem.
flowchart LR
Need["Protection need"] --> Gap["Coverage gap"]
Gap --> Duration["Temporary or lifetime"]
Duration --> Structure["Owner, insured, beneficiary"]
Structure --> Product["Suitable product"]
Product --> Service["Disclosure and servicing"]
When reviewing a missed Life Insurance item, identify the factor that controlled the recommendation. That tells you whether to drill needs analysis, product analysis, implementation, or servicing.
| Controlling factor | What to drill next |
|---|---|
| The client had a temporary income, debt, or dependant need | term insurance, conversion, renewability, coverage amount, affordability |
| The client had estate, tax, business, or lifetime liquidity needs | permanent insurance purpose, cash value, guarantees, ownership, beneficiary planning |
| Existing coverage was being replaced | replacement disclosure, lost guarantees, new underwriting, comparison of old and new coverage |
| The policy role changed the result | owner, life insured, payer, revocable beneficiary, irrevocable beneficiary, estate beneficiary |
| The issue appeared after sale | policy loan, surrender, lapse, reinstatement, beneficiary change, claim support |
After each set, write the protection need in one sentence before reviewing the answer. If you missed the item because the product looked attractive, return to needs analysis. If you missed because the policy feature was unclear, drill product analysis before trying another mixed set.