Comment: Insurance, part of an overall financial plan

I’m willing to bet that a majority of American Chemical Society members either don’t know we make a range of insurance products and services available to them or, at the very least, they don’t understand why we do. And I’m pretty sure almost nobody knows that a group called the ACS Board of Trustees (BOT) Group Insurance Plans for ACS Members is responsible for managing such business and the funds associated with it. I’m privileged to be the chair of BOT, now in my second year.

For over 55 years, the BOT, through the ACS Member Insurance Program, has offered ACS members access to a wide range of quality coverage options and services to help them protect the elements they’ve built their lives around.

Our purpose is twofold. Our first purpose is to offer life and disability insurance products exclusively to ACS members and their families through our endorsed provider—and we can do so economically. We vet and can recommend high-quality providers of other types of insurance products and services to our members—including health, auto, professional liability, and pet, among others. We monitor the insurance industry to find innovative, desirable products to offer to members.

Talking about life insurance is on most people’s back burner, and I think there are a few reasons for this. The need for life insurance sneaks up on you as you live your life and accumulate debt, assets, and perhaps family—and it is unsettling to ask the question: “What happens financially if one day I’m not around?” But for many stages of your life, that’s exactly the right question to ask.

Another reason is that many people have life insurance provided as a benefit where they work. Problem solved, right? Maybe. Most companies offer a standard, one-size-fits-all benefit that may or may not meet your individual risk mitigation needs. Most plans will allow you to purchase additional increments of insurance, but our insurance professionals can help you evaluate those needs and offer supplemental products at member prices if appropriate for your current stage of life.

Consider three scenarios: (1) You’re fresh out of school and have not started a family. (2) You’re approaching early middle age with a house and a family supported by two salaries. (3) You’re within a couple of years of retirement, the kids have moved out, and you’re still in your house. Insurance—particularly life insurance—plays a different role in each of these scenarios.

But insurance only plays a role. Other factors affect good financial health, whether you’re thinking about a house, a family, kids’ college, or retirement. Fitting insurance together with other aspects of financial management can be confusing and daunting.

Here’s our second purpose: The BOT recognizes that we do not just provide products; we provide information. We’ve been thinking about what we can do as information providers to help inform situations such as those mentioned. We’re exploring funding a series of webinars that can provide basic financial literacy education—although they won’t provide specific personal advice because we’re not certified financial planners. The idea is to provide enough information for members who could use a little tune-up so that they’re equipped to ask and answer the next questions for themselves. Questions like: How much should I save? Where should I put those savings? How do 401(k)s and IRAs work—both when you’re paying in and when you need to take out? What’s my tolerance for risk? How do I know when to take Social Security or apply for Medicare? And, of course, what role should insurance play?

We will be working with a financial services firm that will provide general financial wellness instruction as a member benefit. From there, you may decide you have all the information you need, or you may decide to dig a little deeper with a professional. Our goal is to help you fill basic knowledge gaps.

Personal finance webinars are new territory for us. The feedback I’ve received from members who have attended other career-related workshops and webinars indicates that they would like us to be a trusted source of this kind of basic information.

So, here’s my ask. If you think this sounds useful, would you please send us an email at memins@acs.org and tell us your thoughts? The BOT remains committed to expanding and improving its offerings to ACS members.

To learn more about the coverages available, visit the ACS Member Insurance Program at www.acs.org/insurance.

Views expressed are those of the author and not necessarily those of C&EN or ACS.