StudyingLife

Switch exam

LLQP (life licence)

LifeLLQP Life Insurance✓A&SLLQP Accident & Sickness Insurance Seg FundsLLQP Segregated Funds & Annuities EthicsLLQP Ethics & Professional Practice (Common Law)

← All study notes

Accident and Sickness · Component 1: assess needs (35%)

Needs Analysis & Government Programs

Before recommending A&S coverage, measure the income and costs a disability or illness would create and subtract what government programs and existing plans would pay. EI sickness, CPP disability, workers' compensation and provincial health plans all leave gaps.

Assess the client's needs and situation2 min read5 sections

Must-know for the exam

EI sickness: up to 26 weeks at 55% of insurable earnings, maximum $729 a week in 2026; needs 600 insured hours, a 40% earnings drop and a medical certificate.
2026 EI maximum insurable earnings: $68,900 (ESDC).
CPP disability: age 18-65, unable to do any job regularly and long-term; contributions in 4 of 6 years, or 3 of 6 with 25+ years.
2026 maximum CPP disability benefit: $1,741.20 a month (Service Canada).
Workers' compensation covers only work-related injury and illness.
Provincial health plans pay medically necessary hospital and doctor care, not lost income or most drugs and paramedical care.
Self-employed people have no EI sickness cover unless they registered for EI special benefits.
Need = income or costs to cover minus benefits already available; check if those benefits are taxable.
Employer-paid group LTD benefits are taxable (ITA s. 6(1)(f)); employee-paid benefits are not.

On this page · 5 sections

Traps that cost marks

Assuming everyone gets the maximum weekly benefit.
Forgetting the weekly maximum.
Using the old 15-week limit.
Forgetting the 600-hour requirement.
Thinking CPP disability needs long contribution histories or work-related cause.
Confusing CPP's any-job test with an own-occupation definition.
Mixing up EI weekly and CPP monthly figures.
Applying only the 4-of-6 rule.

Why it matters on the exam

Component 1 is 35% of the A&S module. Expect calculations of a monthly shortfall and questions about which program pays in a given situation.

Government programs at a glance

Program	Covers	Limits (2026)
EI sickness	Any illness or injury	26 weeks; 55% to $729/week; 600 hours
CPP disability	Severe and prolonged disability	Any-job test; max $1,741.20/month
Workers' compensation	Work-related injury or illness	Provincial rules
Provincial health plan	Hospital and physician care	No income replacement

Premium

Every note. Every question. One pass.

3 more sections of this note are part of Premium.

Every section of every study note
1,000+ original questions across every outline topic
Full timed practice exams
A worked explanation on every question
Your full mistake bank and weak-area review

Unlock with Premium

From about C$8.25/mo on the Until-you-pass pass (12 months)

More on this topic

Exam-style questions

Leah, 42, is a dental office manager in Moncton earning $1,000 a week in insurable earnings. She has no group disability plan at work. After knee surgery in March 2026 she is off work for 10 weeks, has a medical certificate and has more than 600 insured hours in the past year. What is her maximum weekly EI sickness benefit?
Raj, 39, is a project engineer in Calgary earning $2,000 a week. His employer offers no short-term disability plan. In 2026 he needs 12 weeks off after a back operation, has a medical certificate and has worked well over 600 insured hours. His wife asks how much EI will pay him each week. What is his weekly benefit?
Theo, 23, works part-time at a Halifax restaurant and worked 450 insured hours in the 52 weeks before he fell ill with pneumonia. He has a medical certificate and his weekly earnings dropped by more than 40%. He has no other coverage and asks his agent, a family friend, whether EI will help. Does he qualify for EI sickness benefits?

All study notes