As an AIChE member, you’re likely envisioning a fantastic future for yourself and your loved ones. Whether you’re sending children to college, buying a new home or starting a business, your income is the engine that turns your aspirations into reality. But what if something were to happen to you? How would this impact your family’s plans?

While you could never be replaced, life insurance can help your family handle financial pressure resulting from a loss of income due to premature death. Usually passing to your beneficiaries free from federal income tax, life insurance proceeds can help preserve your family’s standard of living, cover outstanding debts, and keep their aspirations alive.

Term life insurance offers cost-effective protection for times when people need it the most.

Why is term life insurance so popular?

Term insurance is a popular form of life insurance, especially for AIChE professionals, and for good reason. It can provide affordable protection, with a premium that starts lower than permanent life insurance. If you die while the coverage is in force, the face amount is paid to your named beneficiary.

This initially lower premium makes term insurance a solid choice for AIChE members who have a temporary need for life insurance protection, such as paying for expenses like a mortgage, childcare, elder care, college tuition or credit card debt.

Unlike permanent insurance, term insurance does not accumulate cash value and in most instances does not earn dividends. Term focuses solely on providing coverage for a specific term. This is one way the cost is kept lower than permanent insurance.

There are two basic group term life insurance types: annually renewable term (ART), which renews each year at a scheduled premium that typically increases as you age; and level premium term, which features a fixed premium for a specific number of years (the level period) and then increases in subsequent years.

When term life insurance may be appropriate?

Term insurance may be suitable for AIChE members in several situations. Here are just three examples:

• Temporary need for protection. Many AIChE members use term insurance when taking out loans to help assure the loan debt is repaid if the insured dies. Homeowners frequently choose term to protect their mortgage over the life of the loan. Parents use term to help cover their children’s college educations. In short, whenever life insurance is needed for a specific period, term insurance can be an effective solution.
• Budget-minded choices. In situations where life insurance is wanted but dollars scarce, term insurance can serve as a stopgap for AIChE members. Individuals fresh out of college and starting careers may consider term coverage if they have student loans. As their careers progress, and their finances grow, they can expand their coverage to help protect the new dependents and obligations in their lives, often without additional medical exams or questions.
• As a supplement to a full financial portfolio. Term insurance can be an excellent tool when used as part of a broader financial strategy. Let’s say an individual wants to leave a meaningful legacy for their children and grandchildren. Will their savings be enough? What if medical expenses draw down those funds? Life insurance can help address those uncertainties as part of an overall strategy to leave a lasting source of funds.

What to look for in a term life insurance policy

Check out the policy features. When searching for term insurance, AIChE members should look closely at the policy. For one, make sure it’s guaranteed renewable—that is, you can renew your coverage without undergoing a physical exam. You’ll also want to understand the rate classes, because they will impact your cost.

Cost isn’t everything. While it’s tempting to shop for the policy with the lowest premium, members to consider the financial strength and stability of the insurance company. Check its longevity, size, and ratings from independent rating agencies like A.M. Best and Standard & Poor’s.

Coverage created with you in mind. We’ve done the research. The AIChE products offered by New York Life Insurance Company were designed with you in mind, for today’s dynamic professionals who are looking for ways to help make their financial futures more secure.