Fraternity-Testvériség, 1994 (72. évfolyam, 1-4. szám)
1994-07-01 / 3. szám
FRATERNITY Page 9 BUSINESS NEWS COST of TERM INSURANCE WILL RISE IN 1995 I f you are looking into buying insurance, you will realize that Term Insurance is the least expensive of all insurance types offered by the insurance industry. Term insurance is usually purchased when the need for protection is of short duration. It has no cash value, i.e. it has no savings element built into it, but it does provide a large amount of low-cost family protection. You can purchase Term Insurance for an attractive fixed rate for 5 or 20 years, if you decide to purchase it today. This offer may not last much longer. Why you may ask? The reasons are that the life insurance industry priced it too low. This is the opinion shared by many State Insurance Commissioners. In other terms, the Insurance Commissioners feel that the insurance companies may have not backed their term policies with sufficient reserves, which is the capital needed by an insurance company to pay the policyholders’ claims. For the past 5 years, the National Association of Insurance Commissioners (the watchdog of the insurance industry and advisor to all State Insurance Departments) has been working on a new regulation that would require higher reserves for Term Insurance. What this means in layman’s terms is that if this new law goes into effect, the premium which you pay today for a Term Insurance will probably be increased and guaranteed for 1-5 years only. George Dózsa, President DON’T WAIT TILL TOMORROW! I n the past 18 months as Secretary of the Federation, I handled many claims. Unfortunately, the delay in settling some claims could have been avoided if the policyholder had been more aware of a few basic requirements. Through a lifetime we strive to provide our family with a secure future; for this very reason, we ask you to take a few minutes of your time to review the following information: 1. Keep your company informed of your address. This is particularly important. Each year a number of policyholders move without leaving a forwarding address or notifying us. If you are planning to be away for a few months, be sure to leave a forwarding address so that you may continue to receive premium notices and any other important messages from us. 2. Keep your policy in a safe place. You can obtain a duplicate policy if it is lost or destroyed by fire, etc., but not without some inconvenience and delay. This might occur when you or your family needs it most. As an additional safeguard, keep a separate record of your policy. Be sure that it is accessible both to yourself and to your beneficiary and that your beneficiary knows where it is kept. 3. Beneficiaries. Check your life insurance certificate to make sure that the beneficiary/beneficiaries are alive and correctly listed. 4. Payments. Note that payments are made only as shown on the certificate. 5. Review your life insurance program with your branch manager/agent at least every two years. He/she will assist you in making any changes which may be advisable because of changed conditions. Don’t make the mistake of trying to change your program without calling on his/her knowledge and experience. Endre Csornán, Secretary
