pera1.4 Official Organ Of the Slavonic Benevolent Order Of The ate Of Texas, Founded 1897. BENEVOLENCE
VOLUME 56 ® NO. 38
HUMANITY
-BROTHERHOOD
Postmaster: Please Send Form 3579 with Undeliverable Copies to: SUPREME LODGE SPJST, POB 100, TEMPLE, TEX 76501
SEPTEMBER 18, 1968
FROM THE EDITOR'S DESK Education Costs More Buit Worth It. That extra touch of green on many college and university campuses this fall won't be the leaves on ivy-covered walls. It will be the extra dollars required for higher tuitions and fees, or higher living costs, or both. The Life Insurance Agency Managment Association's annual survey of college costs indicates that four out of five schools are increasing their baste charges for the 1968-69 academic year. Average overall charges will run about 6 per cent higher than last year. Tuitions and fees will go up about 8 per cent, while room and board will average about 4 per cent more. Overall charges and increases run higher at private schools for men and lower for state residents attending public colleges and universities. Despite the rising cost, a higher education is worth the price. The Institute of Life Insurance estimates that men who finish college can typically expect to earn about $140,000 more throughout their careers than Male high school graduates. • • Protection and Income After Retirement. The main purpose of life insurance is to help replace a man's
income if he sheuld die prematurely. But suppose he didn't die prematurely. Suppose he lives out his normal lifespan, as the majority of people do. At age 56 or thereabouts, he will likely retire from his job, and his income may change substantially.
However, if he has permanent life insurance that he took out at a younger age, several choices are open to him. With a straight life policy, he can't keep it in full force the rest of his life at the same premium rate he has been paying.
He will undoubtedly still have Money coming in — from Social Security, perhaps from his company pension plan, hopefully also from his personal savings and investments. But all these may add up to considerably less than he had been earning AS an active worker. Then what should he do about the life insurance he had .parchased Mainly to protect his Meanie duttfig his working years? Retirement is one of the important junctures in a man's economic life when he should review his life insurance for changes that may need to be made. Changes at retirement may help to balance his own need for future income with his continuing need for protection. He will likely continue to need at least some protection for his wife, to cover his final expenseS and provide her with income if he dies first. If he has nothing but term insurance, his choices are limited.
Or he can convert it to a smaller amount of fully paid-up life insurance on which he would owe no further premiums. With a. $10,000 policy purchased at age 30, he can convert, it at age 65 to about a $7,900 paid-up poliCy, which will remain in force the rest of his life. Or he can convert it to "extended term insurance" and keep the full $10,000 in force for about 14 more years without paying any further premiums. His coverage would end after 14 years. Suppose he doesn't really need the policy any longer. In that case, he can use its cash value (which would now be about $5,500) to augment his own retirement income. He can take the entire cash value in a single lump sum. He can leave part or all of it with the life company, drawing interest, until he needs it or decides how to use the money. Another option will pay him income as long as he lives. Under a typical