Fraternity-Testvériség, 2007 (85. évfolyam, 1-3. szám)
2007-04-01 / 2. szám
Frequently Asked Questions By Leslie László Megyeri, Secretary/Treasurer Welcome to our new section “Insurance Corner.” Here we will address some of your questions and concerns, regarding purchasing life insurance and becoming a member of HRFA. In this article, I address some of the most frequently asked questions and hope that you will learn more about the issues that are commonly discussed: Q. “What are some of the life insurance products HRFA offers? ” A. There are basically two types of life insurance HRFA offers: term insurance and permanent (whole life) insurance. Term insurance provides death benefit protection for a limited period of time and is cheaper than permanent insurance but does not accumulate a cash value. Since it is cheaper than permanent insurance, you can purchase a higher face value. Permanent life insurance, or whole life insurance, provides protection for your whole life (it doesn’t expire) and accumulates a cash value that you can borrow against. Q. “If I want to purchase a policy with HRFA, how do I know how much life insurance to purchase?” A. The face value of your membership certificate should provide enough funds to pay for all your final debts, such as medical bills and funeral expenses. You may also want enough to pay off your mortgage, pay for your children’s education, and pay off other bills while still providing for those you leave behind. Q. “Should I replace my existing life insurance policy ?” A. Replacing an existing membership can be costly and may not be in your best interest. For example, since you are older now than you were when you purchased your original policy, it is likely the premiums for the new policy will be higher due to your age. Q. “What are the advantages of giving juvenile policies to my grandchildren? A. They are many. First, it’s an inexpensive gift. Secondly, the juvenile becomes the owner of the policy when he reaches the majority age of 16, so the gift will be appreciated long after its original issuance. Thirdly, he can convert a small face-value to a larger face-value permanent life policy without any question of eligibility (such as a required medical exam). Fourthly, since the policy was purchased at an early age, the premiums for the large face-value are very reasonable and remain the same throughout the life of the policy. Lastly, it’s the only gift that promises continued protection throughout the life of the person insured with membership benefits, such as scholarships, mortgages, etc. Is there a better gift than that? Q. “Let’s assume my husband recently passed away and left me a little money and Fm thinking of buying an annuity. What are the advantages of doing so? ” A. Your money grows and the interest is tax deferred until you begin to draw on it. An HRFA member may open an account with as little as $300. Q. “/ recently lost my husband. What is the process 1 should follow to claim a policy?” A. Mail in your certificate to HRFA with an original death certificate. Your claim will be promptly paid. A word of advice-be sure to obtain ample original death certificates as you will need more than you think for various reasons; i.e., transferring property title, etc. Q. “How do I make sure my beneficiaries are up-to-date?” A. Over the course of your life, many changes can and do occur. Marriage, divorce and the arrival of children are some examples. If you’ve had any significant change occur since purchasing your policy, review your policy and contact us if you wish to verify who your beneficiaries are or if you wish to change or add beneficiaries. Also, please notify us of any address change. You may contact us toll-free at 1-888-KOSSUTH (1-888-567-7884). We will continue to address additional concerns in our next issue of the Fratemity-Testvériség. Therefore, please send your questions to the Home Office and we will gladly answer them. Others may be wondering about the same topics and you will be doing them the service of having them answered in this financial forum. 22 Fraternity - Testvériség / Summer 2007
