Fraternity-Testvériség, 1956 (34. évfolyam, 1-12. szám)
1956-09-01 / 9. szám
8 FRATERNITY INSURANCE COUNSELLING By László L. Eszenyi HIGH PROTECTION — AT LOWEST POSSIBLE RATE To select the proper form and amount of insurance, one has to carefully examine the specific needs of the family and of the prospect himself which might occur upon his death or at the time of his retirement. Generally speaking, there are certain CASH needs, such as funeral expenses, estate clearance, mortgage cancellation and finally an emergency fund large enough to keep up the family until adjusted to the changed standard of living. INCOME NEEDS arise in connection with the education of the dependent children — retirement income for the prospect as well as for his widow. An insurance which meets all these needs might justifiably be called complete coverage. But how many of us could afford the premiums on it? To have complete coverage is very desirable, but to take out insurance sufficient to meet cash needs is an absolute must for everyone who feels a sense of responsibility for his family. In order to have some idea about the premium payable for insurance which covers cash needs we have to determine first the approximate amount of the aforementioned expenses. In our previous article we underlined already that $500 or $1,000 is rather a death benefit than life insurance which is supposed to give a little share to the survivors also. Here and again, we would like to emphasize that needs are very different, but in reliable knowledge of our prospects’ standard of living, we put this amount somewhere between $3,000 and $6,000. Let us see now a few premiums due on these amounts, assuming that the lowest rated insurance plan, the WHOLE LIFE (generally known also as STRAIGHT LIFE) was taken: AGE $3,000 $6,000 25 ..................................................$ 4.79 $ 9.11 35 .................................................. 6.22 12.11 45 .................................................. 8.74 17.11 55 .................................................. 13.34 26.33 These premiums are highly competitive as to any other commercial or fraternal asociation. However, one has to think of hospitalization (eventually of pension assessment) also, which might increase the total dues payable for insurance purposes to an amount unfitting into some people’s budgets. We have especially two such groups in our mind. In the first belong young people at the very beginning of their professional or business careers, but having a family and a recently purchased home which is heavily mortgaged, with all those gadgets and appliances sales
