Fraternity-Testvériség, 1995 (73. évfolyam, 1-4. szám)
1995-01-01 / 1. szám
FRATERNITY Page 3 PRESIDENT’S CORNER THE BENEFITS of JUVENILE INSURANCE n insurance policy when purchased early in the life of a child offers numerous benefits. While one of the reasons to insure a child is to cover the cost of final arrangements, a more positive way to look at insurance for juveniles is to consider the benefits it provides for their future lives. Buying insurance early essentially saves children money their entire lives. • Children can become the owner of the policy when they become adults. This enables them to have life insurance at a lower premium than if they were to purchase it as adults. The reason is that the premium for a traditional whole life plan is set at the time the insurance is originally purchased and remains the same throughout the person’s life. Therefore, the earlier a life insurance program is started, the lower the premium rates will be. For many adults, a policy purchased for them in their childhood has proved to be the only life insurance for which they were able to qualify. • A second advantage in establishing a life insurance program at an early age is that the child’s insurability is protected. Accidents and illnesses may take their toll as the child grows, but if the parents have provided some insurance on his life, his later loss of insurability will not leave him without protection. For many adults, a policy purchased for them in their childhood has proved to be the only life insurance for which they were able to qualify. Under the guaranteed insurability coverage the right to purchase additional amounts of insurance at specified intervals, over an extended period, without evidence of insurability, is guaranteed. • Many parents also feel that insurance on the life of a child constitutes a sound savings program for the benefit of the child. Namely, the cash value is readily available through a policy loan, if needed. The insured can either liquidate the funds or borrow against them and use the cash for tuition costs or other expenses. If the insured borrows against the cash value of his life insurance, he usually pays a lower interest rate than that charged by a bank or credit union. • Also, it is much simpler for a child to qualify for life insurance because the risks related to hobbies and occupation are not significant. As an adult, we must remember that insurance companies may not accept applications submitted by applicants whose occupations and hobbies they consider hazardous. And, once the child has earned the right for coverage, it can never be cancelled by the insurance company when he becomes an adult. No special plans are necessary for insuring the lives of children. In fact, our society has a number of life insurance plans available as early as the first year of life (age 0, in insurance terminology). Some of the most typical cash- accumulating plans we offer for juveniles are: • The Single Premium Whole Life. • Traditional Whole Life Policy. • Limited Payment Life (20-Payment Life; Life Paid-Up at Age 60) • Endowment at Age 18. I encourage parents and grandparents to consider the constructive nature of life insurance and its lifetime benefits on the life of the child. Please contact the Home Office, Secretary’s Department, for information regarding our Juvenile Protection Plans. Continued on page 4
