THE UKRAINIAN NATIONAL ASSOCIATION FORUM (04/04/04)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

INSURANCE MATTERS
by Joseph Hawryluk

Don't cash surrender!

Dear Osyp:

I purchased a $1,000 Ukrainian National Association P20 (life) policy for my granddaughter in January 1984. After 20 years of payments, I finally have it all paid up!

My granddaughter did get UNA scholarships every year she was an undergraduate, but now that she is a graduate student, she is no longer eligible for UNA scholarships. But the expenses are still there.

Should I cash in this $1,000 policy and give her that money for graduate school?

- Concerned Grandfather

Dear Grandfather:

That P20 (life) policy is all paid up for a $1,000 death benefit. Due to your granddaughter's young age, the policy will only pay out $359, its current cash value, if you cash surrender now. If you had purchased a 20-year endowment policy, the premiums would have been higher, however, your granddaughter would receive the entire $1,000 after 20 years.

Once you cash surrender her P20 there will be no $1,000 death benefit, no cash value and no UNA member benefits (a 10 percent Soyuzivka discount, a $10 subscription discount on Svoboda, a $10 subscription discount on The Ukrainian Weekly, etc.).

Also, your granddaughter may want to consider purchasing her own life insurance policy. At her young age, premiums are very low, she is healthy and you'd be surprised how difficult it is sometimes to get life insurance at a later age because of unfavorable medical circumstances, etc. And, the approximate cost of an average funeral is approaching $10,000!

So, my advice is don't cash surrender the policy. Let it accumulate cash value. Instead, I wish you luck in helping her find a good paying summer internship!

- Osyp

Joseph (Osyp in Ukrainian) Hawryluk is an advisor on the UNA General Assembly, chairman of the Buffalo UNA District and secretary of UNA Branch 360. This is the first of an occasional column on insurance that will appear in The Ukrainian National Association Forum.

Young UNA'ers

Alexander B. Kuzma and Irene Kytasty-Kuzma enrolled their three children into UNA Branch 277 in Hartford, Conn. The children are: Alina Lubov (above left), Teryn Nadia (above, right) and Maya Victoria (below, left).
Hanna Alexa Bazylevsky, daughter of Christine and Bo Bazylevsky, is a new member of UNA Branch 171 in Jersey City, N.J. She was enrolled by her grandparents the Rev. George and Oksana Bazylevsky.

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