Preview Questions Insurance Advisor | Role Specific Skill

Question 1: How should an advisor determine the appropriate coverage for a client with varying income streams (e.g., salaried and freelance income)?

Which action should you take?

Choose only one option

Calculate an average income and base coverage on that

Consider only the salaried income as a stable base for coverage

Assume a fixed percentage of income as the base coverage

Consider both income streams and assess the sustainability of each

Question 2: In the context of selling life insurance, what approach works best to close the sale effectively?

Which action should you take?

Choose only one option

Appeal to the emotional aspects, such as family security

Provide the client with a free consultation to learn more

Focus on selling high-value policies only

Focus on price and offer discounts immediately

Question 3: What factor should an insurance advisor prioritize when assessing the risk of underwriting a policy for a person with a high-risk occupation?

Which action should you take?

Choose only one option

The client's social and leisure activities

The client's occupation-related risks, such as exposure to hazardous environments

The client's income level and savings accounts

The client's family history of chronic diseases

Question 4: For a client considering a buy-sell agreement funded by permanent insurance, which sales approach addresses both business valuation fluctuations and the policy's role in ensuring a fair buyout at an unknown future date?

Which action should you take?

Choose only one option

Recommend permanent insurance but never revisit coverage levels after issuance

Emphasize a fixed buy-sell valuation method without adjusting coverage levels

Introduce a flexible funding strategy with periodic policy reviews, adjusting coverage as the business valuation evolves over time

Suggest term insurance only, ignoring future business growth

Question 5: To sell annuity-based income solutions that adjust with inflation or have COLA riders, which approach ensures clients grasp how contract fees and inflation assumptions alter their effective income over decades?

Which action should you take?

Choose only one option

Downplaying the COLA rider cost and focusing only on initial income level

Illustrating real (inflation-adjusted) income projections over time, showing how COLA riders and fees reduce purchasing power unless accounted for

Avoiding any inflation discussion and assuming stable purchasing power

Presenting a single nominal income figure without adjusting for inflation

Question 6: Which policy primarily covers business interruption losses?

Which action should you take?

Choose only one option

Liability insurance

Income protection insurance

Business continuity insurance

Property insurance