April 12, 2018
Growth potential of single premium plan hard to beat

At the “Leading with Heart” event in Seguin, I was visiting with local lodge members and grandparents who make it a tradition to buy all of the grandchildren and great-grandchildren a whole life product with Hermann Sons Life.

There was a real sense of pride displayed in that statement, and it’s no wonder; Hermann Sons Life is the best family-friendly, community-based organization in the State of Texas, but maybe I’m a bit biased.

I asked the grandmother how they pay for the insurance, and she said that they only buy single premium products. These grandparents are very smart about how they ensure the legacy of Hermann Sons Life protection for those children. They deftly avoid the scenario we all-too-often see at the Home Office.

Now what do you suppose would happen if both grandparents passed away, or found themselves unable to pay the premiums? Would the parents of the insured continue paying premiums or the insured themselves for that matter?

There are lots of unanswered questions with this scenario. There is a way to ensure that the untimely death or incapacitation of the policy owner will not be an issue, and that is a single premium whole life product.

Generations of youth begin their life-long membership as junior members of our organization. Not only do they benefit from our “living benefits,” but also some very smart parents and grandparents bestowed upon them the gift of whole life insurance. This protection for life is obtained at a young age, when premiums are low and health allows for the best underwriting conditions, providing for a premium that cannot be matched later in life.

That gift of insurance is best conveyed in our single premium whole life products. If budgets allow and funds are available, the single premium product is the best value for these reasons:

• Pay once and you’re done. No further premiums are due for the life of the insured giving the buyer peace of mind that the insured is covered.

• No early surrender charge on the initial deposit.

• Single premiums go to work immediately, earning interest and cash values.

• Competitive rates of interest. Gains are tax deferred and the death benefit is tax free. (Transfer of ownership may cause a taxable event.)

• Lodge dues are assessed, a feature of any fraternal. Your membership dues support your lodge and the great work it does in the community.

To illustrate how the cash value grows in a single premium whole life product, consider the following example. For a 10-year-old male, a $25,000 Flex Life single premium product will cost $3,335.75. Using the current non-guaranteed rate of 4.5 percent credited to the accumulation account, the cash value at age 60 could be $20,850.

That same 10-year-old who gets a $50,000 product for $6,421.50, could have a cash value of $42,723 at age 60.

The accumulation grows tax-deferred and the death benefit is tax free to the beneficiaries. Plus, there is opportunity for growth in the face value as time passes and product accumulation values increase.

In addition to future financial protection, membership in Hermann Sons Life provides living benefits to junior members by offering reduced rates for dance instruction, a summer camp for boys and girls, a day at the water park for our Shining Stars and college scholarships for our young adults.

Camp registration is now in full swing and weeks are beginning to fill! Register now and invite a friend!

If dance is more your thing, then sign up now to become a junior member and get a head start on the rush once the new dance season registration begins in June!

We have single premium plans for adults also. Leave a lasting legacy for those loved ones in your life with a gift of a single premium life insurance product, AND just by being a member, provide for the common good in communities across Texas.

Your local Hermann Sons Life agent can help explain the features and benefits of our single premium plans. Use the agent locator feature on our website or call us at 800-234-4124. Our Marketing Department folks will be happy to assist.

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