Fraternity-Testvériség, 1967 (45. évfolyam, 2-12. szám)
1967-11-01 / 11. szám
in the 11th year. It could be converted in that year to $4,800 permanent insurance without evidence of insurability. Basic Plan THE RIDER may be attached to any plan of insurance for which premiums are payable at least as long as those for the rider, but cannot be attached to any existing plan of the insured. For example, to a 20 Payment Life plan could be attached a 10 year, 15 year or 20 year rider but not a 25 year or 30 year rider for which premiums are payable for 21 and 26 years, respectively. Amount Limits The minimum issued would be $5,000. The maximum would depend on the face amount of the basic plan. For each $1,000 of basic permanent insurance the Federation would issue up to $5,000 Reducing Term rider. The following table illustrates amounts of Reducing Term which could be issued with various amounts of basic permanent insurance. In case the Reducing Term is issued to cover a mortgage, the amount of reducing term should not be less than the outstanding mortgage. In this way, the total amount of insurance will always cover the existing mortgage balance. Basic Reducing Term Total $ 1.000 $5,000 $6,000 1,500 5,000- 7,500 6,500- 9,000 2,000 5,000-10,000 7.000-12.000 3.000 5,000-15,000 8.000-18.000 4.000 5.000-20.000 9.000-24.000 10.000 5,000-50,000 15.000-60.000 Supplementary Benefits The Accidental Death benefit does not apply to the face amount of this rider, only to the basic permanent insurance amount. The Waiver of Premium benefit is available with this rider. If selected, it must be added to both the certificate and the Reducing Term rider. Premiums for the Waiver of Premium benefit on the Reducing Term rider will be payable for the same period as premiums for the rider itself, but not beyond age 60. Disablement must occur before age 60. Non-forfeiture Values This rider provides no cash or paid-up insurance values upon default in premium payment. RETIREMENT INCOME PLAN General Description This type of plan provides the greatest savings element of any plan of insurance. It provides a level amount of insurance for a period of years after which the benefit starts increasing. When it starts increasing, and thereafter, the cash value is equal to the face amount. By age 65, the cash value for each $1,000 initial face amount is $1,656. which will provide $10 monthly income ($8.84 for women) for the rest of the member’s life with a minimum of 10 years’ payment. Thus, the member can provide insurance upon his life and save for retirement at the same time. Furthermore, his retirement income is guaranteed for life. Age Limits This plan would be issued at ages 16 through 55. Amount Limits This plan would be sold in amounts of $1,000 initial face amount and more, up to the Federation’s usual limits of issue. It is suggested, however, that if the member were using the plan to save for retirement, he would require at least $5,000 or $10,000 insurance so that a retirement income of at least $50 to $100 a month would be guaranteed. Commissions The anticipated commisssion would be the same as for other life insurance plans. Quota Credit The anticipated quota credit would be 100% of the initial face amount. Supplementary Benefits The accidental death and waiver of premium benefits can be issued with this plan. The additional amount payable upon accidental death would be the initial death benefit under the certificate. Non-Forfeiture Benefits This plan has substantial cash and paid-up insurance values upon default in premium payment. Early Retirement By applying the cash value under a life income settlement option, the member can start receiving a retirement income at any time prior to the normal retirement age of 65. The income will, of course, be less than at age 65 due to there having been fewer premiums paid and due to the greater expected future lifetime of the member. (J.K.) Declination The rejection by a life insurance company of an application for life insurance, usually for reasons of the health or occupation of Lie applicant. Disability Benefit A prjvision added to a life insurance policy or waiver of premium, and sometimes payment of monthly income, if the insured becomes totally and permanently disabled. Dividend Addition An amount of paid- up insurance purchased with a policy dividend and added to the face amount of the policy. Double Indemnity An accidental death benefit providing for additional payment of an amount equal to the face of the policy in case bf death by accidental means. Endowment Insurance Insurance payable to the insured if he is living on the maturity date stated in the policy, or to a beneficiary if the insured dies prior to that date. INSURANCE TERMS Accidental Death Benefit A provision added to an insurance policy for payment of an additional benefit in case of death by accidental means. It is often referred to as “Double Indemnity.” Actuary A person professionally trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurance such as the calculation of premiums, reserves, and other values. Agent A sales and service representative of an insurance company. Life insurance agents may also be called life underwriters. Application A statement of information made by a person applying for life insurance. It is used by the insurance company to determine the acceptability of the risk and the basis of the policy contract. Assignment The legal transfer of one person’s interest in an insurance policy to another person. Automatic Premium Loan A provision in a life insurance policy authorizing the company to pay automatically by means of a policy loan any premium not paid by the end of the grace period. Beneficiary The person named in the policy to receive the insurance proceeds at the death of the insured. Cash Surrender Value The amount available in cash upon voluntary termination of a policy before it becomes payable by death or maturity. Claim Notification to an insurance company that payment of an amount is due under the terms of a policy. Convertible Term Insurance Term insurance which can be exchanged, at the option of the policyholder and without evidence of insurability, for another plan of insurance. 8
