“Term” life is life insurance for a defined period of time, as opposed to “permanent” life insurance, which applies to an undefined – or lifetime – period of time. Term life is the most affordable option and can be obtained for a certain amount of time during which a certain amount of risk protection is needed.
 
The role of term life in your financial plan is to protect your family when you have not yet accumulated enough assets to do so in case of an emergency. At the end of a life phase, say, after children age or you have built up assets, your risk protection needs may decline and then you may no longer need a term policy.
 
Often clients come to me with no or a small amount of insurance sponsored by their employers. It's often not enough. It's important to understand that meaningful life insurance protection is typically between 10 and 15 times a client's income. This is what it would take to protect your family if something happens to you and allow them to continue their lifestyle, to raise your children and fund their education.
 
The process for obtaining term life insurance can be somewhat involved. Here are the general steps:

1. Advisor: determines the coverage need, analyzes client expenses, assets, family situation (dependents and liabilities).
2. Advisor: selects the appropriate product and life insurance company.
3. Advisor: submits the signed application.
4. Client: undergoes insurance company's medical exam.
5. Insurance company: obtains additional medical records from the client's healthcare providers and analyzes the client's total medical profile.
6. Insurance company: makes a risk determination and offers insurance coverage accordingly.
7. Client: signs the policy, pays the first premium and is then covered.

Long-term disability has the possibility of being more financially devastating than dying prematurely. This is especially so in the case of catastrophic long-term disability such as a stroke which can result in high expenses and a permanent inability to work.
 
Many individuals have inadequate long-term disability coverage. While many employees have adequate protection from their employers, the group coverage offered to federal government employees are commonly insufficient. In addition, having access to these policies is particularly important for self-employed individuals.
 
As with term life, the process for obtaining term life insurance also requires numerous steps, as follows:

1. Advisor: determines the coverage need, analyzes client expenses, assets, family situation (dependents and liabilities).
2. Advisor: selects the appropriate product and long-term disability company.
3. Advisor: submits the signed application.
4. Insurance company: reviews the client’s earned income.
5. Client: undergoes insurance company’s medical exam.
6. Insurance company: obtains additional medical records from the client’s healthcare providers and analyzes the client’s total medical profile.
7. Insurance company: makes a risk determination and offers insurance coverage accordingly.
8. Client: signs the policy, pays the first premium and is then covered.