Fraternity-Testvériség, 1956 (34. évfolyam, 1-12. szám)
1956-11-01 / 11. szám
FRATERNITY 17 to forget also about the pronounced disadvantage of this solution, that is, the inescapable time payment charges connected with real property purchase in most cases. There is hardly any real estate salesman who will call your attention to the fact that for the house priced at $10,000 you will have to pay ultimately $15,840, if it is purchased on an outright installment basis, in 20 years. Yet that is the total of 240 monthly payments on a $10,000 mortgage, at 5%. We nearly always think of life insurance as something to be bought on installments and the time payment charges obscure the investment quality of the insurance. But if one takes time to appraise the investment values of single premium life insurance, and measures the extraordinarily easy terms on which endowment certificates are available, he will realize the unquestionable advantages of this kind of security. Inflation might badly distort insurance proceeds — is another common objection from the side of real estate believers. But how about the possibility of a deflation or recess? Quite an unbelievable assumption in these days, but was it not even more ridiculous toward the end of the “crazy twenties”? — and in an amazingly short time the unbelievable had happened. We believe in the superior value of endowment insurance, because it forces the holder to regular saving on the easiest possible terms and gives assurance to the member that the planned estate will be paid, whether he is living, disabled or dies. OUR ENDOWMENT PLANS After this short analysis of investment possibilities we would like to present the endowment plans which our Federation offers to its members: 1. Twenty Year Endowment. Under this plan dues are paid for 20 years or until previous death of the insured member. The face value of the certificate is payable to the member if he is living on the 20th anniversary of the issuance, or to the beneficiaries upon his previous death. Example: Member’s age is 30; amount of Twenty Year Endowment taken is $5,000; beneficiary, his wife. Monthly dues payable in this case, $19.06. a) If member reaches his age of 50, the Federation pays $5,000 in cash, or he may have a choice of various valuable options to be explained later. b) If member dies at age 31, the Federation remits the whole face value, that is, $5,000, to his widow. 2. Twenty Payment, Endowment at Age 65. This is one of our new plans. It is granted under a certificate by which the rates are to be paid for 20 years, or until previous death of the member. After 20 years no more dues are to be paid, and when the insured member completes his or her 65th year, the face value will be remitted. In case of previous death, at any time after issuance, the beneficiary receives the proceeds. Example: Member is 35 years old at the time of issuance; amount of the insurance is $5,000; beneficiary is his son.
