Ruby, a CFP$$ professional works for a life insurance company and sells only life insurance products. She met with her new client Sally, a single parent, for the first time today. She had already collected data from Sally concerning her income, needs and age of her children. During the meeting, Ruby discussed the distinctions between term, universal and variable life insurance with Sally. She subsequently evaluated Sally's needs concerning life insurance and plans to discuss the advantages and disadvantages $$of two approaches: $(1)$ purchasing a universal policy designed to provide sufficient coverage for Sally$$s $$insurance needs while building cash value for the long term, and $(2)$ purchasing a term policy to cover $$insurance needs until her children become independent and recommending another CFP$$ professional who Ruby is confident could assist Sally with building her investment portfolio for the long term.

Which of the following would be correct under the CFP Board$$s Practice Standards?

Group of answer choices

Ruby is providing material elements of financial planning if Sally chooses option $(2)$ because although term life only concerns insurance, Ruby gathered information and conducted a needs analysis, two of the steps of the financial planning process.

Ruby is engaged in financial planning if Sally chooses option $(2)$ because although term life only concerns insurance, Ruby gathered information and conducted a needs analysis, two of the steps of the financial planning process.

Ruby is providing material elements of financial planning if Sally chooses option $(1)$ because a universal insurance product combines insurance and investment components and therefore her engagement covers two or more of the subject areas of financial planning.

Ruby is not engaged in financial planning if Sally chooses option $(1)$ because she is limiting her engagement to only one financial planning subject area.