Replaced by Lincoln Heritage

[FE101]

Are whole rates through a certificate guaranteed?
Probably not, if they do not pay into the State guaranty insurance fund, and they go belly up
who guarantees the policy holders?

 

[jdeasy]

Well if you read the maintenance of reserves clause then no rates/benefits are guaranteed. Am I wrong?

Yes, you are wrong...................

 

[lgreen]

Yes, you are wrong...................

Care to explain????????????????????????

 

[Newby]

Well if you read the maintenance of reserves clause then no rates/benefits are guaranteed. Am I wrong?

I can't believe how many of you get this wrong on fraternals. The rates on their whole-life are guaranteed.

What you are getting mixed up is that fraternals are members insuring each other. That is what a fraternal is. So in the unlikely event that a fraternal could not financially meet their obligations, they have the right to borrow against the members cash values to pay the claims. A non-fraternal in this same situation would have to go insolvent.

So if RNA ever got in such bad shape that they needed to raise a quick 10-million dollars, they pull $100 out of the cash values of 10,000 certificates and can still operate.

Your A rated non fraternal in that same situation would be forced out of business.

Long before a fraternal gets to that point they would reduce or cancel the non guaranteed fraternal benefits, raise premiums, tighten underwriting, lower commissions, etc.

Strong fraternals are very solid.

 

[bboman23]

I can't believe how many of you get this wrong on fraternals. The rates on their whole-life are guaranteed.

What you are getting mixed up is that fraternals are members insuring each other. That is what a fraternal is. So in the unlikely event that a fraternal could not financially meet their obligations, they have the right to borrow against the members cash values to pay the claims. A non-fraternal in this same situation would have to go insolvent.

So if RNA ever got in such bad shape that they needed to raise a quick 10-million dollars, they pull $100 out of the cash values of 10,000 certificates and can still operate.

Your A rated non fraternal in that same situation would be forced out of business.

Long before a fraternal gets to that point they would reduce or cancel the non guaranteed fraternal benefits, raise premiums, tighten underwriting, lower commissions, etc.

Strong fraternals are very solid.

100 from 100000 policies correct?

 

[jdeasy]

Care to explain????????????????????????

Nothjiong to explain. The contract says the premiums are guaranteed. Same for Foresters or any other fraternal. The whole life rates are guaranteed. They cannot be changed.

 

[WinoBlues]

The rates are guaranteed by the Fraternal same as a policy is guaranteed by the insurance company. The fraternal gets in trouble it can raid the insured cash values.if they have any or assess them the difference. If a insurance company gets in the same problem the State is the back up.

The rates are guaranteed, the cash values or any fringe benefits are not. Less guarantees than a true Whole Life policy.

 

[jdeasy]

The rates are guaranteed by the Fraternal same as a policy is guaranteed by the insurance company. The fraternal gets in trouble it can raid the insured cash values.if they have any or assess them the difference. If a insurance company gets in the same problem the State is the back up.

The rates are guaranteed, the cash values or any fringe benefits are not. Less guarantees than a true Whole Life policy.

Not really. But it is a good scare tactic if you need one.

 

[rousemark]

The rates are guaranteed by the Fraternal same as a policy is guaranteed by the insurance company. The fraternal gets in trouble it can raid the insured cash values.if they have any or assess them the difference. If a insurance company gets in the same problem the State is the back up.

The rates are guaranteed, the cash values or any fringe benefits are not. Less guarantees than a true Whole Life policy.

Even the face amount is nor guaranteed as the assessment can reduce the face amount.

 

[jdeasy]

Are whole rates through a certificate guaranteed?
Probably not, if they do not pay into the State guaranty insurance fund, and they go belly up
who guarantees the policy holders?

No probably about it. The rates are guaranteed.

Surely you not suggesting that agnets illeally use the state guarantee fund against fraternals?