Fraternity-Testvériség, 1967 (45. évfolyam, 2-12. szám)
1967-12-01 / 12. szám
í jf~ra tern a I(\j ^\joitrs — KNOW YOUR INSURANCE THE AUTHORITY FOR LIFE INSURANCE During Evangelist Billy Graham’s stay in New York City, where he preached to capacity audiences made up of persons of all religious denominations, a writer with the Chicago Tribune-New York News Syndicate asked him: Is such a precaution as life insurance compatible with a Christian testimony? To which Mr. Graham replied: A similar question came in several months ago and an answer would always seem in order. Insurance not only is compatible with one’s Christian testimony but the converse is obvious. For a Christian not to carry insurance because of some Christian scruple seems to me ridiculous. The Apostle Paul, writing to Timothy (I Tim. 5:8), says: “But if any provide not for his own, and especially to those of his own kindred, he hath denied the faith, and is worse than an infidel.” “Few people can provide adequately for their families at the beginning of their years of responsibility. Insurance companies are set up to make such a provision possible. The fact that such companies advertise and compete for your business shows that they too profit by the business. Over the years, these insurance companies have developed actuarial tables which show how much you must pay for a certain kind of protection. By joining with millions of others in investing in insurance, you are providing for your loved ones should you die, or you are setting up an estate which will eventually help to care for all of you during old age. Insurance is sound business and for all who invest in it, it is sound common sense. Not only is there nothing in such providing which is contrary to Christian principles, the reverse is the case. For if you do not provide for your loved ones, the Bible says you have sinned.” In the early days of this century the principles of life insurance were poorly understood by the public. Indeed, some questioned its philosophy. So the salesmen of it sought an accepted authority to testify to its fundamentals. It was then that some Bible-reading field underwriter turned to the Bible for support. He found it in Chapter 41 of Genesis. That is the passage that tells the story of the dreams of Pharaoh, ruler of Egypt, and their interpretation by Joseph. In one dream, you will recall, Pharaoh saw “seven well-favoured kine and fat-fleshed, and they fed in a meadow. Then seven other kine, ill- favoured and lean-fleshed came up after them — and did eat the seven wellfavoured and fat kine.” The next night Pharaoh dreamed of “seven ears come up one stalk, full and good — and seven ears, withered, thin and blasted — devoured the seven good ears.” Joseph explained to Pharaoh that these dreams were forecasts of seven years of good production the kingdom would enjoy. But they would be followed by seven years of famine. Therefore, he counseled, the nation should store up the surplus of the productive years and be prepared for the days when there would be little food produced in the land. “Right there,” proclaimed the field underwriter, “was the very first life insurance Society, right in the first book of the Bible!” And, indeed, that is the exact principle of life insurance: That we should save out of our producing years, to provide for our families and our old age, against the days when production would end. Could there be any greater authority for life insurance? (Reprinted from The Fraternal Monitor) INSURANCE TERMS Expectation of Life (Life Expectancy) The average number of years of life remaining for persons of a given age according to a particular mortality table. Extended Term Insurance A form of insurance available as a nonforfeiture option. It provides the original amount of insurance for a limited period of time. Face Amount The amount stated on the face of the policy that will be paid in case of death or at the maturity of the contract. It does not include dividend additions, or additional amounts payable under accidental death or other special provisions. Family Income Policy A life insurance policy, combining whole life and decreasing term insurance, under which the beneficiary receives income payments to the end of a specified period if the insured dies prior to the end of the period, and the face amount of the policy either at the end of the period or at the death of the insured. Family Policy A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the husband and smaller amounts of term insurance on the wife and children, including those bom after the policy is issued. Fraternal Life Insurance Life insurance provided by fraternal orders or societies to their members. Grace Period A period (usually 31 days) following which an overdue premium may be paid without penalty. The policy remains in force throughout this period. Group Life Insurance Life insurance issued, usually without medical examination, on a group of persons under a single master policy. It is usually issued to an employer for the benefit of employees. The individual members of the group hold certificates stating their coverage. Insurability Acceptability to the company of an applicant for insurance. Insurance Examiner The representative of a state insurance department assigned to participate in the official audit and examination of the affairs of an insurance company. Insured The person on whose life an insurance policy is issued. Lapsed Policy A policy terminated for nonpayment of premiums. The term is sometimes limited to a termination occurring before the policy has a cash or other surrender value. Legal Reserve Life Insurance Company A life insurance company operating under state insurance laws specifying the minimum basis for the reserves the company must maintain on its policies. Life Insurance in Force The sum of the face amounts, plus dividend additions, of life insurance policies outstanding at a given time. Additional amounts payable under accidental death or other special provisions are not included. Limited Payment Life Insurance Whole life insurance on which premiums are payable for a specified number of years or until death if death occurs before the end of the specified period. Mortality Table A statistical table showing the death rate at each age, usually expressed as so many per thousand. Mutual Life Insurance Company A life insurance company without stockholders whose management is directed by a board elected by the policyholders. Mutual companies, in general, issue participating insurance. Nonforfeiture Option One of the choices available to the policyholder if he discontinues the required premium payments. The policy value, if any, may be taken in cash, as extended term insurance or as reduced paid-up insurance. Nonparticipating Insurance Insurance on which the premium is calculated to cover as closely as possible the anticipated cost of the insurance protection and on which no dividends are payable. Ordinary Life Insurance Life insurance usually issued in amounts of $1,000 or more with premiums payable on an annual, semiannual, quarterly, or monthly basis. The term is also used to mean straight life insurance. 10
