Knights of Columbus Insurance – “Your Shield for Life”

Many of our brother Knights and their wives have Term Life Insurance from the Knights of Columbus. They found value and security in this form of Insurance because they needed a substantial amount of financial protection if they die too young. Term Policies are mainly used to fund mortgage protection, college nest eggs, retirement savings, child care, and lost income if a family member dies too early. As you can see, most of these needs will probably be reduced as a family grows older and the children leave the home to begin their own lives. Because most Term Life Insurance has limits to the length of time the premiums will remain the same and they will always terminate at a certain age, you can’t rely on them for your “golden years”.

Note: The underwriting for Term Policies that approach age 70, 75, or 80 is very strict and if you qualify, statistically, you will probably outlive the policy. In most cases, Term Policies are not meant to be in force after age 70, 75, or 80 depending on the company. As a comparison, a Term Policy with a termination age of 80 will be substantially more expensive than a policy with a termination age of 70 and the death benefits may contractually change the older you get. (Decreasing Term Insurance) It is easy to conclude, living too long can strip you of the extra protection provided by Term policies.

Upon retirement, one may still owe on a remaining mortgage, a few college loans from the kids, and needs to provide a funeral. Also, your estate might need some extra cash upon your death to pay taxes and provide a smooth transfer of assets to your beneficiaries. Because of this shift in needs as you grow older, having a Permanent Cash Value Whole Life Insurance strategy from the Knights of Columbus will become more important because it will be with you regardless of your age. Buying a Whole Life policy when you are younger is always the best option but there are other avenues available. Here’s one.

Most members are unaware that members who have Knights of Columbus Term Policies and who are less than 64½ years of age have the opportunity to “Convert” some or all of your Term Policy to a Whole Life Policy without medical inquiry. The premium will be determined by your age at conversion, your tobacco status, and riders you transfer to the new policy. Your health rating will not be changed from the original policy unless you ask for a lower rating due to improved health. On the other hand, if your health has deteriorated since the Term Policy was issued, you can be automatically accepted at the original rating and no additional costs will be associated with your poorer health status. As a result, you can maintain some or all of your coverage past age 70 when all KofC Term Policies contractually terminate. As a result, we have brothers and their spouses who will convert a small amount of Term Coverage (minimum of $15,000) each year so the family budget is not “thrown out of whack”. It is a strategy that makes sense for those who know they will need coverage into their “golden years”.

Fraternally, Your Brother and Field Agent,
Marco Manrique
CA LIC 0I39878, FA16570
(707) 301-1783
marco.manrique@kofc.org