THE UKRAINIAN NATIONAL ASSOCIATION FORUM (02/27/05)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

INSURANCE MATTERS
by Joseph Hawryluk

Whole life vs. term insurance

Dear Osyp:

I have been seeing advertisements for term life and whole life. The premiums are quite different. Could you please explain?

- Mike

Dear Mike:

One way to look at these two very different types of policies is to think of the difference between owning a home versus renting an apartment.

Whole Life (permanent) insurance could be compared to "owning" your own home. The policy builds up cash value that can eventually be accessed for loans, to help you pay for a certain number of life insurance premiums, etc. It costs more for the same amount of insurance, but the premium never changes, and you have coverage for your "whole life," as long as you pay the premiums.

Term life insurance can be compared to "renting" an apartment. It is "pure" insurance, with no build up of cash value. You have life insurance for a certain period of time (five or 10 years), as long as the premiums are paid. It is much less expensive. However, the premium increases as you get older (each five- or 10-year term), and it is only good up till age 70. After age 70 you have no more coverage.

Just like home ownership, it is usually preferable to own a home rather than rent an apartment. And so with life insurance, if you can afford to purchase a whole life policy, the benefits are greater. I hope this explanation helps.

- Osyp

Joseph (Osyp in Ukrainian) Hawryluk is an advisor on the UNA General Assembly, chairman of the Buffalo UNA District Committee and secretary of UNA Branch 360. He is also a New York State licensed agent. Readers may reach him at [email protected].

Young UNA'ers

Zakhary Jawny Gawdiak, son of Yuri Gawdiak and Lada Jawny Gawdiak of Silver Spring, Md., is a new member of UNA Branch 134. He was enrolled by Volodymyr R. and Ulana M. Diachuk.
Nestor Michael Sokhan, son of Olga Jawny Sokhan and Oleh Lev Sokhan of Rutherford, N.J., is a new member of UNA Branch 134. He was enrolled by Volodymyr R. and Ulana M. Diachuk.
Maya Rae Bohdana Parker, daughter of Anya Shepelavey and Todd R. Parker of Staunton, Va., is a new member of UNA Branch 15. She was enrolled by her grandmother Christina Shepelavey.
Josie R. Matiash, daughter of Nicholas and Jodi Matiash of Oshkosh, Wis., is a new member of UNA Branch 120. She was enrolled by her grandparents Eli and Ann Matiash.
Alex Kaplun, son of Nicolai and Yulia Kaplun of Bayonne, N.J., is a new member of UNA Branch 269. He was enrolled by his aunt Valentina Kaploun.

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