Fraternity-Testvériség, 1983 (61. évfolyam, 1-4. szám)

1983-01-01 / 1. szám

POLICIES of the HRFA

A recent review by the Field Force Committee and the actuary has found that the portfolio and rates of the Hungarian Reformed Federation in America are adequate. The rates are very reasonable with the exception of certain term policies where they are somewhat higher than the average. The actuary will investigate this and bring this product in line. A study conducted of thirty-eight (38) fraternal and commercial life insurance companies has substan- ciated that our rates are better than average.

The basic thing in insurance is that you get what you pay for! Insurance must be sold to the need of the individual. The need of a young family is different from the need of a single person or an older person. The Federation has the type of policy to suit all the needs.

The most popular policies are the following: Whole Life, 20 Payment Life, Whole Life paid up at 65. To illustrate — at age 35:

$10,000 whole life policy premium: annual $214, monthly $18.74.

$10,000 20 payment life premium: annual $316, monthly $27.44.

$10,000 whole life paid up at 65 premium: $248, monthly $21.74.

Each is like a savings account with a cash value building up each year. This is a method of forced savings while your loved ones have the protection of receiving $10,000 if you should happen to die. Your monthly premium is creating a $10,000 estate!

WHOLE LIFE —

provides insurance protection for life. Dues are payable until the death of the insured membér. The face amount of the certificate is paid at the time of death. This type is recommended for a young family with children. There is good protection but also savings. You can borrow money, loans up to the cash value.

TWENTY PAYMENT LIFE —

provides insurance protection for life. Dues are payable for a twenty (20) year period. After the 20 year period the certificate is “paid up.” The face value of the certificate is paid at the death of the member.

This is very popular with younger people and especially for single persons. It is a higher cash value policy. There is a short paying period and after twenty years the policy is paid up with the cash

value automatically increasing without any further premium payments. You can also borrow money on this policy, loans up to the cash value.

LIFE PAID UP at 65 —

provides insurance protection for life. Dues are payable to age 65 as specified in the certificate. After the payment period, the certificate is “paid - up” with Cash Value automatically increasing without further premium payments: The face value of the certificate is paid at the death of the membér. This type is purchased by those who want to take care of their insurance protection before retirement age. This also is a means of savings. The policy is paid up and there are no more paymen’ts when you retire ! You can also BORROW MONEY, loans up to the cash value, on this type of policy.

TERM INSURANCE —

this is for people who need protection but cannot afford the savings that are inherent in the three above mentioned policies. Young families with children and modest earnings usually purchase this: These policies can be converted into regular savings type plan, when the responsibilities have decreased.

We also have endowments and family protection type policies which we’ll cover in detail in a later column.

Let’s look more closely at a Twenty Payment Life plan:

At age 20, annual premium is $233.40 with double indemnity, (premium vaiver) . In 20 years, total premium paid in is $4,668.00.

CASH VALUE: at age 40 $4,065.00;

at age 60 $6,320.00; at age 65 $6,897.00;

$10,000 protection for twenty years had a total cost of $603 or $30 annually, which is slightly more than $2 per month, (or for $20,000 if death occured by accidental means since double indemnity dues were paid). Since premium waiver is also included, if the member had become disabled at anytime during the 20 years of payment, his policy premiums would had been paid by the society and all benefits would have continue to increase as indicated in the table.

There are no gimmicks in our society’s insurance. There are some agents who are looking out only for themselves, (anxious to write policies) without the necessary concern about the policy holders or the prospective buyer’s interest. Beware of these people. If you want to buy or have bought insurance with the Federation you did the right thing. Check with your representative (note back page of this issue) if you need additional insurance, if you want to review your present coverage Or have any questions about them. We are here to sarve you!

William Puskas, field force coordinator

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