Fraternity-Testvériség, 1991 (69. évfolyam, 1-4. szám)

1991-04-01 / 2. szám

Page 2

TESTVÉRISÉG

FRATERNITY —TESTVÉRISÉG

ISSN-0744-592X

Official Organ of the Hungarian Reformed Federation of America

Published Quarterly

Office of Publication:

2001 Massachusetts Ave . N W. Washington. DC 20036 Telephone (202) 328-2630

Second Class Postage paid at Washington. DC

Postmaster: Send Address Changes to: Fratermty-Testveriseg 2001 Massachusetts Ave . N W. Washington, DC 20036-1011

Editorial Committee:

Editor-in-Chief, Managing Director: Rev Imre Bertalan Associate Editors: George Dózsa, Vice President-Secretary & William B. Puskas, Treasurer

ATTENTION FRATERNITY READERS

We at the Home Office are trying to keep our mailing list as updated and accurate as possible. We are also trying to mail only one copy of the Fraternity to each household; but sometimes it happens that the household receives more than it wants—or perhaps less. Please help us to become as efficient as possible by: informing the Home Office or your Branch Manager of your new or correct address;

returning the labels of the "extra" Fraternities received at your address;

informing us of any "extra" copies requested. Thank you.

One by one God took them from me, All the things I valued most,

Till I was empty-handed,

Every glittering toy was lost.

And I walked earth's highway grieving

In my rags and poverty

Till I heard His voice inviting:

"Lift those empty hands to Me."

So I turned my hands toward heaven, And He filled them with a store Of His own transcendent riches Till they could contain no more.

And at last I comprehended,

With my stupid mind and dull That God could not pour His riches Into hands already full.

SINGLE PREMIUM WHOLE LIFE INSURANCE

One of the most popular insurance vehicles offered on the market today is the SINGLE PREMIUM WHOLE LIFE Policy. This product is designed to offer the purchaser an opportunity to pay the entire premium in one, single, lump-sum payment. "This is the ultimate of limited play plans. ..." Rather than drawing out premium payments over a designated number of years, this plan offers an attractive alternative to pay for the plan all at one.

Up until 1988, this product was viewed by the general public as a life insurance policy that acted like an investment vehicle since "the bulk of the premium goes to the cash value rather than the cost of protection. . . With the enactment of TAMARA," (Tax and Miscelleneous Revenue Act in 1988) this loop-hole was closed. Under this act "policies which have premiums which exceed the government established '7-pay premium test' are classified as Modified Endowment Contracts (MEC's). With a MEC, the taxation rules change for distributions other than death proceeds. Distributions are subject to a 10 percent penalty tax prior to age 59 1/2 to the extent there is a gain in the policy and the gain is treated as taxable income." (LUTC, Personal Insurance Course, 1990, v.2, pp.14-10 + 14-11.)

The intent of the law is that this particular single premium whole life product be used as a death proceed rather than a means for investment and capital gain. In fact SPWLs are regarded as non qualified annuities that do not enjoy the status of tax sheltered investment until the afore mentioned stipulation is met.

Louis Medgyesi, Ohio Director

Amerikád Magyar Református Egyesület

By an anonymous poet