Which types of life and disability insurance coverage are commonly reviewed in WME?

• A. Term life for income replacement, permanent life if appropriate, disability income protection; critical illness coverage as needed.
• B. Whole life only.
• C. Disability insurance only.
• D. No life or disability coverage is considered.

Answer: (A)

In wealth management reviews, the goal is to protect the client’s income, dependents, and long-term financial plan by fitting appropriate life and disability coverage to their situation. Term life is commonly used to provide a sizable death benefit at a lower premium, mainly for income replacement during the years you need protection for dependents, a mortgage, or other ongoing obligations. Permanent life is considered when there are estate-planning needs, liquidity goals, or a desire for cash value that can be used later for retirement or other purposes. Disability income protection is included to replace a portion of earned income if illness or injury prevents work, helping to cover living expenses and debt service. Critical illness coverage is evaluated as needed to provide a lump-sum benefit for major medical events, which can protect savings and reduce the impact on the overall plan.

This combined approach is preferred because it addresses multiple risk factors—death, disability, and catastrophic illness—without relying on a single type of policy. Other options that focus on only one area or omit coverage altogether leave important financial risks unmitigated.