Fraternity-Testvériség, 1956 (34. évfolyam, 1-12. szám)

1956-09-01 / 9. szám

FRATERNITY

9

men foist so ingeniously on them. The other group is composed of new-comers who have arrived but a few years ago, settled for a new life and are engaged in unaccustomed jobs which usually pay less to them than to someone who was fortunate enough to start as a youngster. Both groups are characterized by need for high protection, and having a -limited income, or, expressed insurance technically, they need a relatively high amount of insurance, but being able to care of only a low premium. Our new insurance plan — ADDITIONAL PROTECTION — is the way out of this seemingly unsolvable situation.

ADDITIONAL PROTECTION is a rider which might be added to any life insurance certificate of $1,000 or more, supposing the certificate remains a regularly paying one during the next twenty years. It offers for a relatively small additional rate double or triple the amount of insurance (of the life certificate) if the insured member should die during the first twenty years from the date of issue. This protection is available to members between the ages of 16 and 45 in an amount not higher than $10,000. To illustrate how this rider works, we give some examples:

1. If someone has a $1,000 Whole Life certificate, he may obtain additional protection in an amount of $1,000 or $2,000, which means that the Federation will pay to the beneficiaries upon the death of the insured an amount of $2,000 and $3,000 respectively.

2. If someone holds $10,000 worth of life insurance, only double protection is obtainable, that is $10,000 additional protection in this case, since the maximum amount of the additional protection is limited to $10,000. The total benefit would then be $20,000.

3. A member has a $1,000 Twenty Year Endowment policy since 1946 and is asking for $2,000 additional protection. The Federation cannot comply with such wish, because this particular endowment certificate will cease to be a regulalry paying one in ten years.

The amount of the additional protection may be converted to any life or endowment form of the same or lesser amount within the first ten years without submitting evidence of insurability. For example, someone has held $2,000 additional protection for the last nine years and intends to convert same to an endowment certificate. All he has to do is to write a letter to the home office indicating his intention, the amount of insurance and the particular plan desired. No medical examination is required. The home office will issue the requested certificate and will credit 50% of the reserve for the amount of the additional protection toward payment of the first year’s rate on the converted certificate.

And now, we would like to show in a tabular form that the combination of life insurance with additional protection lowers the rates payable to such an extent that it makes the minimum amount of insurance obtainable safe even for those who are living on a very modest budget. For the sake of consistency we again take Whole Life as basic insurance.