Needs Analysis and Underwriting
LLQP Life Insurance module, Needs Analysis and Underwriting section. This study module is derived from the CISRO LLQP competency profile, standard Canadian life insurance practice, and publicly available regulatory guidance. Verify figures and processes against current FSRA guidance and your authorized LLQP course materials. ExamCAN is an independent study tool, not affiliated with CISRO or FSRA; "LLQP" is used for identification only.
Before recommending any product, the licensed agent must conduct a needs analysis -- a structured process of discovering the client's financial situation, goals, existing coverage, and risk exposures. Recommending without a needs analysis is a professional conduct violation: regulators across Canada require that product recommendations be based on the client's needs and circumstances.
The needs analysis serves three purposes:
- It ensures the client receives coverage that addresses their actual risks.
- It documents the basis for the recommendation, protecting both client and agent from future disputes.
- It reveals gaps or overlaps with existing coverage that should be resolved before adding new products.
A fact-finding interview typically collects:
- Personal information (age, health status, family situation, dependants).
- Financial information (income, debts, assets, existing coverage, savings).
- Short and long-term financial goals.
- Risk tolerance and budget.
Common mistake: treating a needs analysis as a formality to be completed quickly before presenting a pre-selected product. The analysis should drive the product recommendation, not validate it.
Recall: What are the three purposes of a needs analysis? What categories of information does a thorough fact-find collect?