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| The Knights of Columbus Insurance Portfolio |
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| The Knights of Columbus Insurance Portfolio |
Insurance for long term care is increasingly beneficial as people live longer and require either
limited assistance or nursing home care in greater numbers. Custodial services such as bathing,
eating and dressing are not generally covered by Medicare, and nursing home care can cost
upwards of $45,000 per year. These financial realities may force you to deplete assets or to
rely on your family for help. If you require nursing care, you might have to ask your children
for help just when they're ready to send their own sons or daughters off to college -- a common
dilemma among middle-aged people today which causes experts to refer to them as "the sandwich
generation".
Knights of Columbus Care can give you peace of mind. This is a tax-qualified plan available to members and their spouses, ages 40 through 85 (subject to underwriting requirements). Coverage can be tailored to your needs, giving you control over the type of coverage; the daily benefit amount, benefit duration, and elimination period; and the premium you must pay. The policy is guaranteed to be renewable, and a guaranteed purchase option assures you of obtaining added coverage as needed.
Four Kinds of Life Insurance
Different people in different situations have different insurance needs. Accordingly, the Knights of Columbus offer four different types of insurance to its members through its professional sales force, as described below.
WHOLE LIFE INSURANCE
Whole life insurance guarantees you a minimum death benefit throughout the course of your life,
provided that you pay the required premiums. Typically, the premiums remain level for the life
of the insured. Whole life insurance usually requires premiums to be paid for as long as the
insured lives, but some cash value policies require premiums for a shorter period, such as 20
years or until age 65. Premiums for these policies will be higher, since the premiums will be
paid for fewer years.
Whole life insurance builds cash value. Whole life insurance, unlike term insurance, also can earn dividends as early as the policy's third anniversary. These dividends, which cannot be guaranteed, can be paid in cash, or they can reduce the amount of premium you pay. They can also be kept with the Knights of Columbus to earn interest or they can be used to purchase additional insurance.
The advantage of whole life insurance is that the policy, if kept current, covers you for your entire life, as opposed to term insurance that covers you only for a term of years. Whole life insurance also accrues a cash value that can be used in a variety of ways.
TERM INSURANCE
Term insurance pays a death benefit to your family if you should die during the term of the policy. The terms of coverage vary, and some policies allow you to renew the policy at the end of a given period. Depending on the policy, your term insurance premium rates will often increase at each renewal date, but renewal will generally be guaranteed up to a certain age. Term insurance can usually be converted to a cash value policy.
THE DISCOVERER PLAN
The Discoverer combines whole life insurance with term insurance. Over the course of the policy, the term insurance is converted to whole life insurance. Like Knights whole life policies, the Discoverer builds cash value and earns dividends. These dividends convert the term insurance into permanent, whole life coverage.
ANNUITIES
An annuity is a contract for which you pay premiums—either a single premium or a series of
premiums—in return for future periodic payments. Annuity contracts can be flexible in the
number, amount and frequency of premiums, and the manner and amount in which payments will be
made to you later.
The Knights of Columbus offers a number of annuity options. Our flexible premium annuity allows you to pay either a single premium or multiple premiums, and determine the amount and frequency of premium payment. You can also choose deferred periodic payments or a lump sum payment. The interest rates on this annuity are subject to change on a quarterly basis, which allows the Knights of Columbus to maintain competitive rates. The Knights also offer a single premium immediate annuity that is funded by a single premium payment and provides immediate periodic payments. Under one version of this plan, a husband and wife can receive immediate payments, with reduced payments continuing for the life of the surviving spouse.
