Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

When a client reveals a medical issue that impacts their insurance, it is essential for the CFP® professional to encourage the client to disclose the issue. This approach is crucial for ensuring that the financial plan is comprehensive and accurately reflects the client’s current situation, including potential impacts on insurability, premiums, and future financial needs.

By promoting open communication regarding medical issues, the professional can help the client understand the implications of their health on insurance coverage. This is vital in developing a robust and tailored financial plan that adequately addresses all aspects of the client’s life, including protection against unforeseen circumstances related to health.

This choice also emphasizes the importance of ethical standards in the profession, where transparency and full disclosure are necessary for effective financial planning. Ignoring or downplaying the issue would not only be irresponsible but could lead to inadequate financial protection for the client.

Understanding the interplay between health and financial planning contributes to the effectiveness and relevance of the services provided, ensuring that all recommendations are aligned with the client's actual risk profile and insurance needs.