Fraternity-Testvériség, 2006 (84. évfolyam, 1-4. szám)
2006-07-01 / 3. szám
Some people claim that you should buy only term insurance and invest the difference and not buy a permanent life insurance policy. Unfortunately, very few people invest in a wealth building account that has a guaranteed return and which can be sold on short notice in case the funds are needed. Also, insurance proceeds are tax- free to the beneficiary, and it is protected from creditors. Report of the Secretary-Treasurer Many people do not understand the value of life insurance because they have never experienced a death claim. It is then that the magic of life insurance becomes evident. Since becoming your Secretary /Treasurer, I’ve never had a member call me to say that he had too much cash value at a time when he needed a loan on his membership certificate or a beneficiary tell me that he did not need the death proceeds. What happens if the term insurance terminates when your health fails and you cannot renew it or cannot afford the high premiums? Obviously, you would be better off with a permanent life insurance policy which has the same premium payments. Permanent life insurance, which some claim is the worst investment, becomes a good investment at death because the cost has been pennies for each dollar of death benefits provided. Your membership certificate pays the maximum at a time when it may be needed the most. It can be purchased on an installment plan but your family does not have to finish paying for it. It is tangible evidence of your caring for your loved ones. Lastly, it can lend you money when you most need it. Therefore, permanent life insurance is a good investment as part of your investment portfolio, and you should consider purchasing it to the extent of your financial situation. Another good investment is our annuity product which is well suited for our members to provide for future retirement income. The flexible premium deferred annuity in particular may be initiated with a minimum deposit of $300 and it accumulates on a tax deferred basis until withdrawn upon retirement. HRFA credits a competitive interest rate on a daily basis to all our annuity contract holders. At the same time, we provide “old-fashioned” service. For example, when you contact the Home Office, you will speak to a customer service representative to answer any and all questions about this attractive financial product. To assure that fraternal benefit societies like HRFA are financially sound, we file annual and quarterly reports that include financial statements. Moreover, every asset of HRFA must be disclosed whether it is a stock, bond, mortgage, or any other type. Also, the report must disclose the amount of reserves that are set aside to satisfy policyholders’ claims and the current surplus. For HRFA, it is about $14 million for life contracts and over $5.5 million for surplus. A “surplus” is defined as monies that are free of policyholders’ claims. As you read this report, the 1956 Hungarian Revolution’s 50th commemorations are mostly over. This extraordinary event triggered the eventual demise of Communism in Europe and made it possible for democracy to flourish in Central and Eastern Europe. As a refugee of 1956, I thank all of you who participated, remembered, and supported these events in numerous cities in the U.S. and in Hungary. We must always remember that freedom is not free; 1776 USA; 1956 Hungary. Leslie László Megyeri 0 Page 8 Fraternity - Testvériség
