Certified Financial Planner (CFP) Exam 2026 – 400 Free Practice Questions to Pass the Exam

Ralph recommended a disability policy for Jack after reviewing his insurance coverage. This recommendation emphasizes the importance of ensuring that individuals are financially protected against the loss of income due to a disability that prevents them from working. Disability insurance provides a safety net by replacing a portion of the insured's income, allowing them to meet their financial obligations such as mortgage payments, living expenses, and other financial commitments during periods of inability to work.

In many cases, individuals might have health, homeowners, or long-term care insurance, but they often overlook the necessity of disability coverage, which is crucial for protecting against the financial risks associated with unexpected health issues or accidents. By recommending this policy, Ralph aligns Jack's insurance needs with a comprehensive risk management strategy that addresses potential gaps in income protection. This demonstrates an understanding of Jack's broader financial situation and the need to safeguard his financial future against the risk of disability.