Fraternity-Testvériség, 1956 (34. évfolyam, 1-12. szám)
1956-11-01 / 11. szám
16 FRATERNITY INSURANCE COUNSELLING By László L. Eszenyi CORRECTION In our previous article we used a computation in connection with the change of insurance plans which was, due to a misunderstanding, not correct. The credit is not the difference between the past premiums, but the result of a much more complex actuarial calculation. The credit in the given example would be higher than $121.80 as computed erroneously in the article; on the other hand, the member should pay also a higher amount than quoted in case he desires to change from Whole Life certificate to Twenty Year Endowment. We wanted to make this correction even though we never fulfill requests concerning change of plans without previous consultation with our actuary. NEED FOR ENDOWMENT CERTIFICATES Under both insurance plans discussed until now, benefits are payable to the beneficiaries upon the death of the member. If life insurance would take care only of the problems that arise when man dies, it would solve only half of the financial problems that men face. The plight of the widow and her children is no more pitiable than is the plight of the old man whose earning power has been destroyed by the passing years. Due to ever developing modern medical science, life expectancy grows longer. The chances that a man outlives age 65 (social security age) are far greater now than ever before. Governmentl research, covering the financial condition of men when they reached age 65, found that 18 out of every 100 had only independent means, nine were drawing pensions, 22 were still working, and 51 were dependent upon charity or family assistance. Thus, out of every 100 persons reaching their 65th birthday, 73 are destined to come down to old age with empty hands, having but social security benefits to live on. The necessity of additional old age income became generally self- evident. However, the ways how people intend to reach this important goal are different. Many try through the ordinary channels of investment to establish a new source of income to replace lost earning power. Despite good intentions and painstaking efforts, few men have become successful in this line. The odds against fruitful investment are too great. There are but few people who can resist the temptation of current pleasures and put away money regularly. Even these few make some unwise or unfortunate investments. Finally, they might not have the sufficient time to accumulate an adequate estate. The majority believe in real property only and turn a deaf ear to the insurance men when they try to explain the property value that every insurance offers to the members. However intangible a certificate may be, insurance benefits are as tangible as food, clothing or a house. Advocates of real property investment seem
