July 21, 2008

“WHERE TO BUY”

"If you don’t where you are going any road will get you there”  Lewis Carroll

The same can be said about buying Life Insurance and/or Annuities.  Should you buy from a Fraternal Insurance Company or from a Commercial Life Insurance company?   Let’s explore some differences.

You might ask when and where did the concept of Fraternals start or come into existence.  To be his “Brother’s Keeper” – and that each of us has a responsibility to others is a founding principle of Fraternalism and Fraternal Life Insurance.  In ancient Greece, the spirit of brotherhood was expressed in loosely organized and semi religious societies, which provided financial aid to their members in time of sickness and death.  Similar societies raised funds from their members that were held in trust to pay for member’s funerals and fraternal gatherings in the early days of the Roman Empire. These forerunners also provided a friendly place where people could congregate in peace and harmony.

Through the years Fraternals have evolved to where they are today through growth of the lodge systems, and the formation of industry associations.  A Fraternal is a not-for-profit organization, without capital stock, organized for the benefit of its members and their beneficiaries, and has a lodge system. (None of these features apply to commercial companies.)  

Because there are no stockholders, there can be no interests seeking to make a profit from operations perhaps at the expense of the member.  Therefore, the management can focus on providing sound insurance services (like life insurance and annuities), membership benefits, (language and dance schools, education grants, scholarships, loans, home mortgages, etc.) at the lowest possible costs. In addition, since there are no owner groups to potentially influence sound financial practices, management can concentrate on providing its services (making payments for death, sickness or disability of its members) to the membership. 

Some words and phrases used by Fraternals and Commercial organizations are different.  Such as: Certificate vs. Policy; Member vs. Policyholder; Deputy vs. Agent; etc. 

Unlike Commercial Life Insurance companies that are beholden to the stockholders, when you belong to a Fraternal, the long-term interest and well being of the member is the most important objective.

We have explored some of the differences between a Fraternal Life Insurance Company, (like the Polish Roman Catholic Union of America, the country’s oldest Polish Fraternal insurance company, celebrating it’s 135^th year Anniversary since its founding in 1873).  Now is the time to start planning for some of the catastrophes discussed above. Planning now is Positive Thinking.  Not planning NOW could be a disaster.  Ask yourself, what do you want to happen when you die?  (Will the kids be able to stay in the same school or will they have to switch?  Will your spouse have to go to work in order to pay the mortgage, utility bills, etc.?  Is there a child’s wedding in the future that will have to be paid for?  What about those retirement plans? The questions can just go on and on.) Remember that Life Insurance is meant to benefit those that you leave behind.    An annuity plan is meant to help you during your retirement years.  Each of these products is beneficial in your portfolio of financial tools. 

NOW while you are thinking about it, CALL so we may assist you with your Annuity and Life Insurance Certificate needs from the Polish Roman Catholic Union of America.

PUT YOUR MONEY TO WORK FOR YOU!

Contact your local PRCUA Agent/Deputy or one of the PRCUA Satellite Offices in OH (800) 318-8234, PA (800) 558-8792 or WI (877) 690-5827 or the Home Office Membership Department toll-free at (800) 772-8632 or (773) 782-2600.  We will answer your questions and help you determine what type of Annuity or Life Insurance is best suited for your needs.  We are here to help you Today and in the Future.