Last Updated on June 27, 2017 by lifepolicyshopper
Final Expense Life Insurance | Using Fraternal Benefit Societies
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When comparing death benefits that are available throughout the 54 states and territories we look across all programs that are available to you when it comes to getting the most death benefits for the dollar spent. Whether we use a life insurance company, mutual company or a Fraternal Benefit Society; we enjoy the capability to deploy the right entity that makes the most sense for your situation in order to get the most benefits that you qualify for.
There are three basic types of life insurance companies:
• Stock companies, which are owned by stockholders;
• Mutual companies, which are owned by policyholders; and
• Fraternal benefit societies, which are organized and carried on solely for the mutual benefit of their members.
Further, regardless whether we use a company, mutual or a Fraternal Benefit Society we help people find programs that have the following Guarantees:
1. First Day Coverage. You are fully protected the very first day your coverage goes into effect with no exclusions and no waiting period.
2. Ease of issue. No physical exams.
3. Your premiums will never go up. Lock into a rate at your current age and the cost will never increase regardless of changes to your health and age.
4. You benefits will never go down. Regardless of changes to your health and age.
5. All programs build cash values.
6. The benefit is paid to your beneficiary tax free on the worst week of their life.
7. Your policy can never be cancelled as long as premium payments are made.
8. This is a protected asset that you will never be forced to liquidate.
So what is a Fraternal Benefit Society?
Fraternal Benefit Societies are exempt from Federal Income Taxes pursuant to section 501C (8) of the Internal Revenue Code. According to the IRS Code; in order to maintain their tax-exempt status Fraternal Benefit Societies must meet four (4) requirements.
1. Must have a Fraternal and Benevolent purpose. This means they must engage in one of five activities established by the IRS and they are: Charitable, Social, Educational, religious or patriotic.
2. Members must have a shared affinity or common bond.
3. Operate under the lodge system. Meaning members are organized into groups. Members participate; give voice locally and nationally through an election of a regional and national board representative. Participation can be as much or as little as a member wants.
4. Fraternal Benefit Societies must provide insurance benefits; which was a primary purpose of the creation of the Fraternal Benefit Societies over one hundred years ago.
Fraternal benefit societies were developed in the mid to late 1800s as a way for people, many of them immigrants from Europe, to work and associate alongside others with similar ethnic, religious and cultural backgrounds. These non-profit organizations provided “mutual aid” to many individuals and families. This aid included benefits for death, disability and illness, but also involved a “lodge system” where their families could meet for various social and charitable events. These benefits continue to this day.
According to the American Fraternal Alliance, fraternal benefit societies raised over $17 million in the wake of the 9/11 attacks and more than $17 million following hurricane Katrina. The AFA also reports that volunteerism among fraternal benefit societies represents over 95 million hours per year, worth an estimated $1.6 billion, and a total of $410 million is spent annually on other fraternal benefits.
Below is a video that discusses how little folks know about what a Fraternal Benefit Society is and what they do in communities across the US.
Finding The Most Benefits that YOU Qualify For
We stay abreast on underwriting practices across all the programs we represent and we understand how to place the most difficult cases to make sure we can find first day coverage at the best price possible. We make sure that we are getting seniors the most death benefit for the dollar spent. We know that most of the people we help are on fixed incomes and every dollar counts. That’s why it’s very important that you let us make sure that you have one of the best plans offered in your state that you qualify for.
Final Expense Life Insurance | Using Fraternal Benefit Societies
We will now review one of the Fraternal Benefit Societies we work with across the US in order to give us the diversification necessary to place any medical condition we might encounter to get you the most death benefits that you qualify for. And there’s absolutely no reason for you to pay for a guaranteed issue plan that has a two year wait or return of premiums only when you have a chance to qualify for first day coverage.
KSKJ Life
KSKJ Life is a great Fraternal Benefit Society. They have an easy application and a short point of sale telephone interview. Some of my favorite things about this company and how we can offer great value to seniors across the US are:
• They have a great priced fully underwritten whole life product.
• They accept insulin diabetics even with neuropathy at standard coverage.
• They take most heart medications and current prescriptions of nitrostat at level.
• They take COPD at standard.
• Great member benefits.
• They take congestive heart failure if diagnosed over two years ago.
• It’s the best price – bar none!
We hope this article has given you some good information on what Fraternal Benefit Societies are and how we use them to get folks the most value for their dollar spent. The value of working with Lifepolicyshopper,com is we have access to all three types of life insurance entities in order to find the best value for you.
Unfortunately, when agents don’t have access to these Fraternal Benefit Societies and the great value they bring; they tend to talk about the mystery surrounding these organizations and use the very points that make them great to scare the uninformed consumer into paying a higher price for less death benefits with a company they have access to.
Anyone that has a policy through a Fraternal Benefit Society being encouraged by another licensed agent to replace this policy on the basis of being a Fraternal should ask the agent to put these reasons for the replacement in writing before proceeding.
We're glad you're here - take a look at how we used our favorite Fraternal Benefit Society plan for folks with COPD.
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