Vestnik 1998 04 29

Life Insurance . . .

.

1998 SPJST Insurance, Annuity, and Mortgage Lending Extra

and more!

he SPJST provides money for your family if you die too soon.

Annuities, mortgage loans, mortgage protection and insurance for business purposes are also available to qualified members. hat's more, the SPJST and its statewide network of local lodges sponsor a wide range of family-oriented activities and community service projects, including musical and dance groups, picnics, contests, summer camps and youth activities. or more information, contact one of the sales representatives listed herein, or call the SPJST Home Office in Temple at 1 (800) 727-7578.

Exploring Your Options

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

1998 SPJST What You Insurance, Annu Should Know About and 11/la/gage Ls ling Extra Buying Life Insurance Published April 29, 1998, in lieu of the Vestnik (VOLUME 86, NO. 17), the 1998 SPJST Insurance and Mortgage Lending Extra provides a summary of general insurance information and of the insurance glans, annuity programs and mortgage lending services available to qualifying SPJST members and prospective –e-.-ters.

Table of Contents: What You Should Know About Buying Life Insurance

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SPJST Offers a Range of Affordable Insurance Options

3

Illustration One Universal Life

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Illustration Two: WholeLife ........... . ..... .............. ... . .. . .

........... ...... . ........... ...... .

Illustration Three: Adult 20 Pay Life

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Illustration Four: Mod-Term........ .......... . ..............

Lone Pay Life: NotJust for Kids

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. .... ...........

..... ........... .... . . ........

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.......... . . . .....

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..... . .................. 10

Senior Life: When You Need More

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Annuities Add Value to Membership

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Traditional IRAs Offer Security

11

What Makes the Roth IRA Unique?

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Buy a Home or Build a Business

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General Information on Real Estate Loan Applications

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Local Lodge Sales Representatives

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STATE FIELD MANAGER Gene McBride P.O. Box 366 Eddy, TX 76574 Office Phone: (254) 773-1575 Home Phone: (254) 859-5855 SPJST Home Office P.O. Box 100 • Temple, TX 76503-0100

SPJST OFFICERS President Howard Leshikar Office Phone: (254) 773-1575 Home Phone: (254) 771-1359 Vice President Leonard Mikeska Office Phone: (254) 773-1575 Home Phone: (254) 778-3720 Secretary - Treasurer Lanita Anglin Office Phone: (254) 773-1575 Home Phone: (254) 985-2334 Financial Secretary Jerry Mikulas Office Phone: (254) 773-1575 Home Phone: (254) 773-2950 Legal Advisor Sidney Kacir Office Phone: (254) 778-5228 P.O. Box 5119 Temple, Texas 76505

SPJST DIRECTORS Andrew Vavra, District One Home Phone: (409) 774-7519 4517 Sutton Court, Bryan TX 77802 Frank Klinkovsky, District Two Home Phone: (254) 773-4801 3514 Preston Oaks Drive Temple, TX 76504 Johnnie Krizan, District Three Home Phone: (254) 826-5882 Route Two, West, TX 76691 Stanley Broz, District Four Home Phone: (915) 442-3271 P.O. Box 33, Lowake, TX 76855 Louis Hanus, District Five Home Phone: (713) 686-6160 4006 Ascot Ln., Houston, TX 77092 Matt S. Vanek, District Six Home Phone: (512) 578-2687 1009 Northgate, Victoria, TX 77904 Bob Bayer, District Seven Home Phone: (830) 216-7954 Route Four, Box 166 Floresville, TX 78114

STATE _ ]ELD REPRESENTATIVES Monday through Friday 8 a.m. to 5 p.m.

1-800-72-SPJST After Office Hours and/or Weekends, call DISTRICTS ONE AND TWO Keith Gatewood (409) 696-4379 keithg@myriad.net DISTRICTS THREE AND FOUR Jerry Kucera (254) 826-5425 DISTRICTS FIVE AND SIX Jim Wiest (512) 579-9045 DISTRICT SEVEN Gene McBride (254) 773-1575

STATE FRATERNAL ACTIVITIES COORDINATOR Barbara Rosenkranz (254) 773-1575

STATE YOUTH DIRECTOR Joni Lange

(254) 773-1575

VESTNK SPJST's Weekly Member Newspaper Editor Brian Vanicek SPJST Home Office P.O. Box 100 Temple, TX 76503-0100 Office Phone: (254) 773-1575 Home Phone: (254) 985-0007 bvanicek@wm.com

Buying

life insurance is not like any other purchase you will make.

When you pay your premiums, you're buying the future financial security for your family that only life insurance can provide. Among its many uses, life insurance helps ensure that, when you die, your dependents will have the financial resources needed to protect their home and the income needed to run a household.

Choosing a life insurance product is an important decision. As with any major purchase, it is important that you understand your needs and the options available to you.

Life insurance also can be used to help with other financial goals, such as funding retirement or education expenses. However, it is important to remember that the main purpose of life insurance is financial protection. If your primary goals are something other than protection, you should consider what other financial products are avail-

(Editor's Note: The information contained in this article is based on material provided by the American Council of Life Insurance.)

able to meet those goals.

The information in this article has been compiled by the American Council of Life Insurance, a trade association of more than 600 life insurance companies. Collectively, these companies provide about 90 percent of the life insurance in force in the United States.

Portions of the text have been modified to relate more closely to the fraternal life insurance industry.

Learn the Basics . . .

The best way to make an informed decision about buying life insurance is, to become familiar with the basics.

Why do I need life insurance?

Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents won't have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that there is no federal income tax on proceeds paid to beneficiaries.

Our Strength Rests in Our Diversity To outsiders—the SPJST is a concept that is sometimes easily misunderstood. To some, it's merely an insurance company; to others, it's a social club; and, finally, to others, it's a historical and heritage society. So who's right?

At its best, the SPJST embodies the characteristics of all these definitions, demonstrating that the strength lies in diversity. The SPJST is a society that members can join for any number of reasons. It's a "package deal" built upon the idea of addressing human needs—financial, social and cultural.

The sale and purchase of insurance is necessarily a cornerstone of membership in the SPJST. As such, the Society offers a wide range of insurance programs, annuity plans and mortgage options designed to meet the varying needs of its members.

The 1998 SPJST Insurance and Mortgage Lending Extra presents general information about these fraternal benefits available to qualifying SPJST members and prospective members.

For personal assistance, contact your local lodge sale representative. Thanks to Vice President Leonard Mikeska and the SPJST Insurance Department Ind Secretary-Treasurer Lanita Anglin of the ;Mortgage Lending Department, the American Council of Life Fi nrarce and Dearborn Financial Publishing, for their cooperationin publishing this special issue.

The ability to meet human needs and uphold strong human values is the mortar that holds the society together. The fraternal component of the SPJST further enhances membership by emphasizing the social and civic responsibilities that members share with each other and the communities in which they live. There are few limiting factors placed on local lodges and how they choose to meet their fraternal obligations. Really, what it comes down to is initiative and imagination.

All over the state, SPJST members are committing their time and energy to the support of worthwhile causes and community support efforts. And, at their January 1998 meeting, the SPJST Supreme Lodge designated four groups as "SPJST Statewide Charities" in 1998: The Texas Czech Heritage and Cultural Center (LaGrange); The Czech Cultural 'and Community Center (Houston); The Czech Educational Foundation of Texas; and The Peaceable Kingdom Retreat for Children.

Through projects such as these and others, we are taking the best that the SPJST has to offer — a tradition of helping people to care for their families — and extending it to communities throughout the state. In light of all these things, there is indeed great promise for the future of the SPJST. Fraternally, Editor Brian Vanicek, FIC —SPJST-

3

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA How much life insurance do need?

Before buying life insurance, you should assemble personal financial information and review your family's needs. There are a number of factors to consider when determining how much protection you should have. These include: • any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes; • funds for a readjustment period, to finance a move or to provide time for family members to find a job; and • ongoing financial needs, such as monthly bills and expenses, daycare costs, college tuition or retirement.

Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.

What is term insurance?

Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term.

Some term insurance certificates can be renewed when you reach the end of a specific period which can be from one to 20 years. The premium rates increase at each renewal date. Many certificates

require that evidence of insurability be furnished at renewal for you to qualify for the lowest available rates. The. SPJST offers several term options, including the popular 10-year Modterm and 20-year Modterm certificates.

What is permanent insurance?

Permanent insurance provides lifelong protection and is known by a variety of names, described later. As long as you pay the necessary premiums, the death benefit always will be there. These certificates are designed and priced for you to keep over a long period of time. If you don't intend to keep the certificate for the long term, it could be the wrong type of insurance for you.

All SPJST permanent certificates — including whole, ordinary and universal — have a feature known as "cash value" or "cash surrender value." This feature, which is not found in most term insurance certificates, provides you with some options: • You can cancel or "surrender" the certificate—in total or in part—and receive the cash value as a lump sum of money. If you surrender your certificate in the early years, there may be little or no cash value.

• If you need to stop paying premiums, you may be able to use the cash value to continue your cur(Continued on next page.)

Family Protection for Less than $2 Per Day? Here's How. If it's been a while since you bought life insurance, you may be in for a pleasant surprise!

Since it was introduced in 1994, SPJST's Modterm — short for "Modified Term" insurance has been one of our most popular insurance programs. And for good reason, the 10-year Modterm certificate carries with it an "age enhancement option" that allows the certificate holder to double coverage at any time between the second and ninth year of the Modterm issue date at the original premium rate.

To find out more about the 10- or 20-year Modterm certificates and how they may fit in with your needs, please contact your local lodge sales representative.

Examples of the Modterm Plan in Action Amount of Coverage $200,000 $200,000 $15,000

Take a closer look and see what you may have been missing.

Are you and your family adequately covered? Unless you deal with life insurance regularly, it can be an intimidating and sometimes difficult subject to discuss. It is for that very reason that we need to routinely discuss and explain the many practical benefits of the life insurance products offered by the SPJST. If you haven't purchased insurance in a while, you may be surprised at the many affordable life insurance options available through your local lodge sales representative.

The following listing provides a brief summary of the insurance options that are available: Universal Life. A flexible protection plan issued to ages 0 to 80 which offers both a guaranteed and current interest rate on the cash value accumulation.

Mod-Term. A modern 10-year term product issued to ages 20-60, renewable to age 70 and convertible prior to age 65 with indeterminate premiums. Can be continued as an Annual Renewable Term certificate from age 70 to 95. Ask about original age enhancement option.

The cost per thousand dollars worth of coverage has decreased considerably from where it was just a few years ago. In evaluating your family's needs, SPJST's Modterm Program may be what you're looking for.

Both 10-year and 20-year plans can be purchased in varying amounts to fit your special needs.

*Husband, Age 35 - Nonsmoker *Wife, Age 34 - Nonsmoker '''Two Children Between Ages 0 - 24 Total Annual Premium

SPJST Offers a Wide Range of Affordable Insurance Options

Annual Premium/ Monthly Premium $296/$27 $250/$23 $84

$630 *Proposed plan is our Modterrn, 10-year renewable and convertible insurance. **Proposed plan is our Modified Life-Juvenile, based on two units of $7,500 each.

Mod-20. A modern 20-year term product issued to ages 20-50, renewable to age 70 and convertible to age 65 with indeterminate premiums. Can be continued as an Annual Renewable Term certificate from age 70 to 95.

Modified Premium Whole Life. Targets children and issued up to age 24.

Affordable term converts to permanent whole life at age 25.

Senior Life. A whole life product designed as a final expense certificate for ages 50 to 80. Eligibility determined by short medical questionnaire. Physical exam and blood test not required.

Affordable and written with relaxed underwriting requirements.

Lone Pay Life. A whole life product available with just one premium. The certificate is then paid-up. Issued to ages 0 through 70.

Adult and Juvenile Whole Life. A whole life product designed for both young and mature applicants that offers affordable premiums and builds cash value.

Adult and -Juvenile 20-Payment Life. A whole life product designed for both

young and mature applicants with premiums payable for twenty years. Issued to ages 0 through 60.

Annual Renewable Term (ART). A one year term product that automatically renews each year with applicable premiums. Issued to ages 16 through 65. Can be converted to permanent insurance prior to age 65. Term expires at age 70.

Fifteen-Year Term. Offers term coverage to applicants at affordable premiums.

Issued to ages 16 through 55. Can be converted to permanent insurance prior to age 65 or certificate coverage expires at age 70.

Term to Age 65. Offers affordable term coverage with issue ages 16 through 44.

Convertible to permanent insurance prior to age 65.

Protector Plan. Designed as a reducing term insurance plan on two lives over a 20-, 25-, or 30-year period. Pays off on the death of the first insured. Premums are calculated on combination of two insureds ages. Can be used as a mortgage cancellation plan.

Twenty-, Twenty-five- and Thirty-YearDecreasing Terms. Offer affordable coverage with reducing (decreasing) death benefit applicable for selected period of time.

Annuities. Both qualified (IRA) and nonqualifed are offered to SPJST members.

Interest rates are posted every week on page three of the SPJST's weekly newspaper, Vestnik. Current rates, as of this printing appear on page 11 of this special issue.

For more information on the insurance options available to you, please contact your local lodge sales representative. If you're not sure who that is, call the SPJST Insurance Department at 1 (800) 727-7578 and they can put you in touch with a sales representative in your area. In many cases, the insurance application process can be accomplished at your home in one meeting. Other times, it may take an additional visit since the sales representative may need to spend some time assessing the information you provide in the initial meeting before he or she can recommend the appropriate life insurance solution.

—SPJST-

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

What You Should Know About Buying Life Insurance (Continued from page 3.) rent insurance protection for a specific period of time or to provide a lesser amount of protection to cover you for as long as you live.

• You may borrow against the cash value of your certificate. Unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions.

You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit.

The cash values of some life insurance products may be affected by the Society's future experience, including mortality rates, expenses and investment earnings.

Keep in mind that with all types of permanent certificates, the cash value of a certificate is different from the certificate face amount. Cash value is the amount available when you surrender a certificate before its maturity or your death. The face amount is the money that will be paid at death or at certificate maturity.

What are the advantages and disadvantages of term and permanent insurance?

Term Insurance Advantages • Initially, premiums are generally lower than those for permanent insurance, allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest.

• It's good for covering specific needs that will disappear in time, such as mortgages or car loans.

Disadvantages • Premiums increase as you grow older • Coverage may terminate at the end of the term or may become too expensive to continue.

• Generally, the certificate doesn't offer cash value or paid-up insurance.

Permanent Insurance Advantages • As long as the necessary premiums are paid, protection is guaranteed for your entire life.

(Universal Life matures for cash value at age 95.)

• Premium costs can be fixed or flexible to meet personal financial needs.

• Certificate accumulates a cash value that you can borrow against.

(Loans must be paid back with interest or your beneficiaries will receive a reduced death benefit.)

You can borrow against the certificate's cash value to pay premiums or use the cash value to provide paid-up insurance.

• The certificate's cash value can be surrendered—in total or in part— for cash or converted into an annuity. (An annuity is an insurance product that provides an income for a person's lifetime or for a specific period of time.)

• A provision or "rider" can be added to some certificates, giving you the option to purchase additional insurance without taking a medical exam or having to furnish evidence of insurability.

Disadvantages • Required premium levels may make it hard to buy enough protection.

• It may be more costly than term insurance if you don't keep it long enough.

Getting Started .. .

After you have thought about your financial needs and have become familiar with the basic types of life insurance, you will need to visit with an insurance sales representative.

What can I expect my sales representative to do for me?

A sales representative should be willing and able to explain various certificates and other insurance-related matters. Let your sales representative know what you expect from him or her.

You should feel satisfied that the sales representative is listening to you and looking for ways to get you the right type and amount of insurance at an affordable price.

Now that you have reviewed the basics of life insurance and thought about your personal financial needs, you can shop for a life insurance certificate with more confidence and knowledge.

What can I expect during a sales representative visit?

The sales representative who you select will meet with you to discuss your life insurance needs. He or she will ask questions about family income and your net worth. Using the information you already have assembled about your financial situation, you should be prepared to discuss your insurance options.

Will the sales representative ask questions about my health?

In this initial meeting, be prepared to answer questions about your health (for example, age, medical condition, medical history, family history, personal habits). It is important that you answer these questions carefully and truthfully; this information helps the SPJST charge a fair premium for your coverage. For instance, you may pay a lower premium if you don't smoke. On the other hand, if you have a chronic illness, you may be charged a higher premium.

Also, in the event of a claim, accurate and truthful answers enable your beneficiary to receive prompt payment.

Inaccurate or untruthful answers, however, may cause delay or even denial of a claim.

When you apply for life insurance, you may be asked to have a medical exam. Often, a licensed medical professional will make a personal visit.

Sales Representatives Recommendation...

Once you have discussed your financial needs and objectives with your sales representative, he or she will recommend the type of life insurance certificate that will best suit your purposes. Often, the sales representative will provide a "certificate illustration" that will show how your certificate will work.

Carefully study Our sales representative's recommendation and ask for a point-by-point explanation if there are items you don't understand. Because your certificate is a legal document, it's important that you know what it provides.

Here are some other questions you should consider asking: Does this certificate truly meet my needs?

If your sales representative recommends a term certificate, consider the following: • How long can I keep this certificate? If you want the option to renew the certificate for a specific number of years or until a certain age, ask your sales representative about the terms of renewal of the contract.

• When will my premiums increase?

Annually? Or after a longer period of time, such as five or 10 years?

• Can I convert to a permanent certificate? Some certificates allow you to convert the certificate to permanent insurance without a medical exam, regardless of your physical condition at the time of the conversion. These certificates are known as "convertible term."

If your sales representative recommends a permanent certificate, consider the following: • Are the premiums within my budget? Be sure you want to spend the money for this type of longterm coverage.

• Can I commit to these premiums over the long term?

• Make sure you know the amount you would receive if you surrender your certificate.

Keep in mind that permanent insurance is designed to provide protection for your entire life. If you don't plan to keep the product for many years, consider another type of certificate.

Cashing in a permanent certificate after only a couple of years can be a costly way to get insurance protection for a short term.

What does my certificate illustration show?

An illustration shows certificate premiums, death benefits, cash values and information about other items that can affect your cost of obtaining insurance. Several sample illustrations appear in this special issue, beginning on page six. Some of the items listed in the illustration are used by the Society to reduce your costs if its

future financial results are favorable.

Your certificate may provide for dividends to be paid to you as either cash or paid-up insurance. Or it could provide for interest credits that could increase your cash value and death benefit or reduce your premium.

These items are not guaranteed. Your costs or benefits could be higher or lower than those illustrated, because they depend on the future financial results of the Society. With universal life, your values will depend on the results of the underlying portfolio of investments.

Ask your sales representative for an explanation of the illustration; some figures are guaranteed and some are not. Remember that the insurance company will honor the guaranteed figures regardless of its future financial experience.

It is important to keep in mind that an illustration is not a legal document.

Legal obligations are spelled out in the certificate itself.

Here are additional questions to ask about the certificate illustration: • Is the illustration up to date? Is it based on current experience?

• Is the classification shown in the illustration appropriate for me (i.e.,smokerInon-smoker, male/female)?

• When are premiums due—annually, monthly or otherwise?

• Which figures are guaranteed and which are not?

• Will I be notified if the nonguaranteed amounts change?

• Does the certificate have a guaranteed death benefit, or could the death benefit change depending on interest rates or other factors?

• Does the certificate pay dividends or provide for interest credits?

Are those figures incorporated into the illustration?

• Will my premiums always be the same? Is it possible that the premium will increase significantly if future interest rates are lower than the illustration assumes?

• If the illustration shows that, after a certain period of time, I will not have to make premium payments, is there a chance I could have to begin making payments again in the future?

• Is the premium level illustrated sufficient to guarantee protection for my entire life?

What happens if I fail to make the required premium payments?

If you miss a premium payment, you typically have a 30- or 31-day grace period during which you can pay the premium with no interest charged.

After that, the SPJST can—with your authorization—draw from a permanent certificate's cash value to keep that certificate in force. In some flexible premium certificates, premiums may be reduced or skipped as long as sufficient cash values remain in the certificate.

However, this will result in lower cash values.

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA What happens if I become disabled and can't pay, the premiums on my certificate?

Provisions or "riders" that provide additional benefits can be added to a certificate. One such rider is a "waiver of premium for disability." With this rider, if you become totally disabled for a specified period of time, you do not have to pay premiums for the duration of the disability.

Are other riders available?

Another rider, called an "accidental death benefit," provides for an additional benefit in case of death as a result of an accident.

A relatively new rider offered by some companies provides "accelerated benefits," also known as "living benefits." This rider allows you, under certain circumstances, to receive the proceeds of your life insurance certificate before you die. Such circumstances include terminal or catastrophic illness, the need for long-term care or confinement to a nursing home. The SPJST does not currently offer accelerated benefits.

Ask your sales representative for information about these and other certificate riders.

When will the certificate be in effect?

If you decide to purchase the certificate, find out when the insurance becomes effective.

Here are a few tips to keep in mind about your life insurance purchase: • Take your time. On the other hand, don't put off an important decision that would protect your family. Make sure you fully understand any certificate you are considering and that you are comfortable with the company, agent and product. Don't rush into a decision just because you are feeling pressured.

• When you purchase a certificate, make your check payable to the SPJST, not to the sales representative. Be sure you are given a receipt.

• After you have purchased an insurance certificate, keep in mind that you may have a "freelook" period — usually 10 days after you receive the certificate — during which you can change your mind. During that period, read your certificate carefully. If you decide not to keep the certificate, the company will cancel the certificate and give you an appropriate refund. Ask your sales representative.

• Review the copy of your application contained in your certificate.

Promptly notify your sales representative or the SPJST of any errors or missing information.

• If another company contacts you and wants you to cancel your current certificate to buy a new one, contact your original sales representative or the SPJST before making any decisions. Surrendering your certificate to buy another could be very costly to you.

• If you have a complaint, contact your sales representative, district director or SPJST Insurance Department with your concern.

• Review your certificate periodically or when your situation changes to be sure your coverage is adequate.

Where else can I get information about insurance?

• Your local sales representative and SPJST Home Office are good sources of general information about insurance.

• Contact the National Insurance Consumer Helpline (NICH) at 800-942-4242. NICH is a tollfree consumer information telephone service sponsored by insurance industry trade associations.

• Look in your local library for magazines or books on insurance or personal finance.

• The consumer affairs division of the Texas DepUrtment of Insurance can also provide useful information. They can be reached at (512) 463-6425.

—SPJST--

The Time is Right to Make New Friends In addition to contributing to the common good of your community, being an "active" lodge member can also be a lot of fun ...

Fraternalism and fraternal life insurance are both rooted in the principle that each of us has a responsibility to each other. Going back to the days of the Roman Empire, there were societies organized to unify groups and provide financial aid in time of sickness and death. Even then, there was a keen awareness of the cruelties and hardships that death brings to families.

These early societies had another purpose. They recognized the need of human beings for companionship. For that reason, they provided a way for people to meet in friendly gatherings — where selfishness and prejudice were suppressed and the principles of brotherhood were nurtured, thereby establishing a better understanding among the members.

You belong, too! Consider attending your next lodge or district meeting. Remember, "The time is right to make new friends."

5

Illustration One: Universal Life This illustration is being provided in cooperation with the Texas Department of Insurance to help you better understand the flexible premium universal life insurance certificate shown in the accompanying table. The table at right is based on the information as if supplied by a 39-year old male in the "Preferred" risk class rating. Before you examine the table, please take a few moments to read the information to learn about universal life insurance — what it is and how it works and also to better understand why the table, while helpful in illustrating the certificate, should not be relied upon as a representation offuture certificate performance.

What is Flexible Premium Universal Life Insurance?

Flexible Premium Universal Life Insurance provides a death benefit and can build cash value. Unlike whole life insurance where the premium amount and death benefit are fixed, flexible premium universal life, within limits, permits you over the life of the certificate to change the premium and death benefit according to your needs. With a flexible premium certificate, if you do not pay enough to cover the cost of insurance and a monthly expense charge, part of your cash value will be used. If these costs are greater than the surrender value, your certificate will lapse with no value unless you pay additional premium.

How does a Universal Life insurance certificate work?

A universal life insurance certificate

has two parts: a specified death benefit and a cash value. Each month, we will deduct from the cash value the monthly cost of insurance and a monthly expense charge, and credit the remainder with interest. This process is repeated each month until: (1) you die; (2) the certificate matures at age 95; (3) the certificate lapses (there is not enough surrender value to cover the cost of insurance and monthly expense charges); or (4) you cancel the certificate. If you cancel the certificate in the early certificate years, you may not get back the entire cash value because a surrender charge (back end load) will be deducted. Please consult the table for specific examples of the costs incurred for early cancellation of this certificate.

How is the cost of insurance calculated?

The monthly cost of insurance for the death benefit is calculated by multiplying a monthly cost of insurance rate times the net amount at risk. Usually, the monthly cost of insurance will increase if (1) the monthly cost of insurance rate increases or (2) if the net amount at risk increases.

The rate is lased on your attained age, sex, smoking status and rating.

Our Society has a risk class rating ranging from "0" through "12", with "0" being the best and "12" the worst rating. A rating of "0" for purposes was assigned in preparing the, attached table. The underwriting process will determine your actual risk class rating.

As a rule, your monthly cost of

insur-

Universal Life.

Tailored to Your Needs.

Universal Life has been called many things: • The Plan of the Future • A Computer-Age Plan • A New Concept in Life Insurance • A Plan Custom-Designed for Each Insured it's all of these things -- and more. Here are some of the features of SPJST's Universal Life contract, which we call our "SPJST Flexible Protector Plan": Step 1: You elect an amount of insurance and select Death Benefit Option A or B (as described below). You can also select the amount of premium you want to pay and make the initial payment.

Step 2: As each premium is received by SPJST, a small expense charge is deducted and the balance goes into your cash value account.

Step 3: At the beginning of each month, a charge for the life insurance protection is deducted from the cash value to pay the monthly life insurance protection costs.

Step 4: Interest at current rates is credited to the fund each month.

Coverage is Flexible. You have a choice of two death benefits, Option A or Option B:

SPJST Life Insurance... . . . and more!

Option A: Level Death Benefit. The death benefit is made up of life insurance and the cash value.

Initially, this benefit is equal to the face amount. However, current tax law states that there must always be a certain minimum proportion of life insurance in the certificate. Therefore, as the

cash value approaches the face amount, the death benefit increases automatically.

Option B : Increasing Death Benefit. The death benefit is equal to the face amount of life insurance protection plus the money in the cash value account.

For more information on the SPJST Universal Life certificate, please contact your local lodge sales representative.

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA ance rate increases as you get older.

The net amount at risk depends on the certificate's death benefit amount, the certificate's cash value, and whether you choose a level death benefit plan or an increasing death benefit plan. The certificate being illustrated for you features a level death benefit plan.

Under a level death benefit plan, the certificate's death benefit generally does not increase unless the certificate owner elects to make a change.

Consequently, the net amount at risk under a level death benefit plan is

equal to the difference between the certificate's death benefit amount and the certificate's cash value. As the amount of the certificate's cash value increases, the net amount at risk decreases. Conversely, as the cash value decreases, the net amount at risk increases. The net amount at risk increases when monthly earned interest and premium payments are not sufficient to meet the monthly cost of insurance and expenses. The net amount at risk increases by an amount equal to the decrease in cash value.

Conversely, the net amount at risk

decreases when monthly earned interest and/or premium payments exceed the monthly cost of insurance and expenses. The net amount of risk decreases by an amount equal to the increase in the cash value.

Under an increasing death benefit plan, the certificate's death benefit is equal to the initial death benefit plus the certificate's cash value.

Consequently, the net amount at risk under an increasing death benefit plan is always equal to the initial death benefit.

Explanation of Table Headings

"Premium Type" identifies the premium as flexible, so that the premium outlay is chosen by the insured.

"Maturity Age" is the age at which the Society will pay an endowment benefit if the insured is living and the certificate is in force.

The Endowment benefit is the cash value of the certificate at the time this benefit is paid.

"Rider Benefits" indicate the benefits provided by riders attached to the certificate. If the additional benefits provided by a rider are of a type other than an increase in the death benefit, or if an accidental death benefit on the life of the insured is provided by riders, the amounts in the Death Benefit Amount column will not show an increase on account of the rider benefits.

"Guaranteed Interest Rate" indicates the minimum interest rate (shown on an annual basis) that the Society could credit to the cash value.

"Mid-Point Interest Rate" is the average of the guaranteed and current interest rate.

"Current Interest Rate" indicates the nonguaranteed interest rate (shown on an annual basis) that the Society is currently crediting to the cash value, and is allowed to illustrate.

"Guaranteed Monthly Expense Charge" indicates the maximum expense amount that could be deducted each month from the cash value. Monthly expense charges are deducted whether or not a premium is paid.

"Current Monthly Expense Charge" indicates the current non-guaranteed expense amount that would be deducted each month from the cash value. Monthly expense charges are deducted whether or not a premium is paid.

"Guaranteed Premium Expense Charge" identifies the maximum amount that could be deducted from each premium payment.

This certificate has no premium expense charge, therefore this entry shows "None".

"Mid-Point Premium Expense Charge" is the average of the guaranteed and current premium expense charge.

"Current Premium Expense Charge" identifies the current non-guaranteed amount that would be deducted from each premium payment. This certificate has no premium expense charge, therefore this entry shows "None."

"Illustration Date" indicates the date the illustration was prepared.

"Insured" indicates the person (or persons) who would be covered by the death benefit under the certificate being illustrated.

"Age" means the age of the insured as of the date the certificate would be issued, or, in the case of an in force illustration, it is the attained age of the insured on the certificate anniversary nearest the illustration date.

"Assumed Risk Class Rating" indicates your risk class rating used in preparing the Illustration. The underwriting process will determine the actual risk class, which may be different from what is shown in the tables.

"Initial Death Benefit" identifies the amount of death benefit under the certificate on its issue date. It does not include any additional death benefits provided by riders.

"Death Benefit Type" indicates whether the death benefit plan chosen is level or increasing.

"Initial Premium Amount" identifies the amount of premium that is assumed to be paid to the Society at intervals.

"Premium Mode" identifies the interval that premiums are assumed to be paid to the Society. Typically, this is annually, semi-annually, quarterly or monthly with the first payment due as of the issue date for the certificate.

Insured: Mad

Age 39

"Mid-Point Monthly Expense Charge" is the average of the guaranteed and current monthly expense charge.

Sex Male

Risk Class Rating: Preferred Society: SPJST Supreme Lodge Initial Death Benefit: 0100.000 Death Benefit Type: Level Initial Premium Amount $813.55 Premium Mode: Annual Premium Type: Flexible/Outlay Maturity Age: 95

Illustration Date 0412798 Monthly Pxoense Charge

Jritkrhst Rate'

Prem Pao Cho 1% of pram)'

Guaranteed: $7.00 Mid-Point 87.00 Current: $7.00

Guaranteed: 4.50% Mid-Point: 5.75% Current: 7,00%

Guaranteed: None Mid-Point: None Current: None

Mid-Point Values

Guaranteed Values Year End

End Age

Prem Pd During Year

Death Benefit Amount

Cash Value

Death Benefit Amount

Surr Value

1

40

814

100 000

545

2

41

814

100,000

1,092

3

42

814

100,000

1,653

4

43

814

110,000

5

44

814

100,000

6

45

814

100,000

3,353

2.804

7

46

814

100.000

3,927

3,488

8

47

814

100.000

4,506

4,177

9

48

814

100.000

5.079

4.859

10

49

814

100,000

5,656

11

50

814

100,000

- 12

51

814

3

52

814

14

53

814

100,000

15

54

814

100,000

814

100000

zs

59 64 as

814 814

35

74

814

40 45 50 55

79

814

84

814

as

814

94 95

814 814

Canificate Lapses at Age:

Cash Value

Current Values Death Benefit Amount

Surr Value

Cash Value

Surr Value

100.000

584

0

100 000

100,000

1,184

196

100.000

623 1,279

100,000

1,809

930

100,000

1,970 '-

2,216

774 1,448

155,000

2,452

1,683

100.000

2.698

1,929

2.783

2.124

100,000

3,110

2.451

100,000

3.454

2,796

100,000

3.790

3,241

100,000

4.254

3.705

100,000

4,493

4,054

100.000

5,100

4,660

100.000

5215

4.886

100,000

5,983

5.654

100,009

5.952

5,733

100.000

6.908

6.689

5,546

100,000

6.717

6,608

100.000

7,889

7,779

6.228

6,228

100.000

7,501

7,501

100.000

8,919

8.919

100,000

6,782

6,782

100,000

8,293

8.293

100.000

9.992

100.000

7,319

7,319

100,000

9.095

9,095

100000

11,110

9.992 11.110

7,838

7,838

100.000

9,908

9,908

100.000

1 2279

12279

8,316

8.316

100,000

10,717

10,717

100,000

13.491

13,491

9,965

9,965

100,000

14,664

14,664

100,000

20,331

20331

100,000 100,000

9,168

9.168

100,000

17,692

17,692

100.000

28.388

28.388

2,657

2,657

100,000

17,824

17,824

100.000

37,454

37.454

0

0

0

100.000

10,790

100,000

47,227

47,227

0

0

0

56.939

0

0

0

100.000 100.000

56,939

0

0 0

10,790 0

66,630

66.630

0

0

0 0

0

100,000

76,611

76.611

0

100.000

94,095

94095

0

0

101.279

100,823

100.823

0

0 104

0

0

0 0

0

0

0

71

0 0 77

291 1,091

1

All numbers in these 6 columns represent benefits and values which are not guaranteed. These numbers should never be considered or relied upon as a representation of future certificate performance.

Contact your local lodge sales representative for information on how an SPJST Universal Life Certificate could benefit you.

Explanation of Column Headings "Year End" indicates a twelve-month certificate period. Certificate year 1 begins on the assumed issue date of the certificate being illustrated. Other certificate years begin on the anniversary of the assumed issue date. For an in force illustration the certificate year 1 begins on the certificate anniversary nearest the reprojection date.

"End Age" indicates the age which the insured would attain at the end of the applicable certificate year.

"Premium Paid During Year" indicates the total premium that would be paid during the certificate year, assuming that premiums are paid consistently with the "Premium Amount" shown at the top of the table and with any planned premium changes.

"Premium Expense Charge" reflects, for each certificate year, the total expenses that would be deducted during that certificate year from the premiums paid under the assumptions illustrated. This certificate has no premium expense charge, therefore the column entries show "0".

"Death Benefit Amount" indicates the death benefit provided on the life of the insured at the end of the certificate year.

"Monthly Expense Charge" reflects, for each certificate year, the total monthly expenses that would be deducted during that certificate year from the cash value under the assumptions illustrated. These deductions would apply whether or not any premiums are paid, and would not be affected by the amount of premiums paid.

"Cost of Insurance" indicates the total amount that would be deducted during that certificate year for the cost of providing the death benefit under the assumptions illustrated.

"Interest Credited" reflects, for each certificate year, the total amount of interest that would be credited during that certificate year to the cash value under the assumptions illustrated.

"Cash Value" is, under the assumptions illustrated, the balance remaining in the cash value at certificate year end.

"Surrender Charge" indicates, under the assumptions illustrated, the amount that would be deducted from the cash value in order to obtain the corresponding surrender value.

"Surrender Value" indicates, under the assumptions illustrated, the amount of money at year end which the certificate owner will receive if the certificate is canceled.

What factors influence certificate performance?

Generally stated, as long as the `monthly earned interest and premium payments exceed the monthly cost of insurance and monthly expense charge, the cash value will increase. Two factors strongly influence this process: the monthly cost of insurance rate and the credited interest rate. Under the certificate illustrated in the table, we are contractually obligated to credit the cash value with a guaranteed rate of interest.

We are also contractually obligated never to apply a greater monthly cost of insurance rate than the maximum rate set out in the certificate.

Since no one can accurately forecast the future, the accompanying table provides a hypothetical mid-point between guaranteed and current assumptions.

The mid-point values are based upon an average of current and guaranteed rates and expenses.

How do Federal income tax laws affect a Universal Life insurance certificate?

Currently, the interest earned on your cash value is tax deferred. Life insurance certificate withdrawals (cash surrenders) normally are not taxable until the total amount withdrawn exceeds the total amount of premiums paid into the certificate. Amounts withdrawn in excess of total premiums paid are taxed as ordinary income. Also, proceeds from loans made against the certificate are normally not taxable.

However, if the certificate lapses, amounts borrowed in excess of premiums paid are currently taxed as ordinary income.

Certificate Riders This certificate is illustrated with no riders attached.

Other Important Information About the Certificate and Attached Table The certificate illustrated in the left column includes the following: • The initial death benefit is $100,000.

• The first year annual premium is $530.

• Premiums are payable monthly and each payment is scheduled to be $44.17.

• A certificate loan is being illustrated in the accompanying illustration. You should understand that the existence of a certificate loan may decrease the interest rate which is credited to the cash value. The certificate provides that interest credited on that portion of the cash value which is security for a certificate loan is 4.50%.

• The Society will pay an endowment benefit to the insured if the certificate is still in force, and the insured is living and attains the age of 95. This is called the "maturity age." This means the Society will pay your cash value amount on the certificate anniversary date when you have reached the maturity age, instead of waiting for you to die.

—SPJST-

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

Illustration Two: Whole Life

Options At Lapse

This illustration is being provided to help you better understand SPJST's Whole Life Insurance plan. The text and accompanying tables have been calculated for a 30-year old male in the "Preferred" risk class rating.

Whole Life: What's in a Name?

Traditional whole life insurance is so termed because (1) it is one of the original forms of life insurance sold and (2) protection is guaranteed and the premiums are payable for the insured's "whole life," which is defined as age 100.

If a premium is unpaid at the end of the grace period and the certificate has a Nett Cash Value, and if the certificate has no Automatic Premium Loan provision in force, any one of the following options may be elected: 1) Surrender the certificate for its cash value; 2) Use the cash value to con-

The Whole Life certificate depicted below and at right offers permanent protection with guaranteed premiums, cash values and death benefits. Adult Whole Life is a Non-Participating Whole Life Insurance certificate with guaranteed level premiums to age 100.

Underwriting Class: Non-Smoker The premiums required for this coverage have been calculated assuming this certificate is issued in the Non-Smoker underwriting class. Actual premiums required for the insurance coverage will ultimately depend on the outcome of the underwriting process, and may vary from what is shown on this illustration. If so, you will receive a revised illustration with your insurance certificate.

Whole life insurance is designed for the individual who wishes to purchase a relatively low-cost life insurance certificate that he or she plans to keep in force for a long period of time. Because of its flexibility, whole life insurance is frequently used as the base policy to which term insurance can be added ... the cash values enhance the popularity of the whole life certificate since they can be used as a source of funds for certificate-holder loans, or they can be withdrawn completely to provide supplemental income as needed during retirement.

Initial Insurance Benefit The death benefit provided at issue is assumed to be $100,000. The death benefit is the amount payable in the event of death, as stated on the front page of a certificate. The actual amount payable may be decreased by loans.

Introduction to Life Underwriting Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

$100,000 Non-Participating Whole Life Certificate Contract Premium: $78.00 Monthly

Contract Premium Provided the Contract Premium of $78.00 is paid monthly, the Initial Insurance Benefit of $100,000 is guaranteed to be paid.

Death Benefit

Cash Value

936 936 936 936 936

Total Premium 936 1,872 2.808 3,744 4,680

100,000 100.000 100,000 100,000 100,000

0 0 100 800 1,500

Reduced Paid-Up Amount 0 0 800 5,800 10,300

31 32 33 34 35

End of Year 1 2 3 4 5

36 37 38 39 40

6 7 8 9 10

936 936 936 936 936

5,616 6,552 7,488 8,424 9,360

100,000 100,000 100,000 100,000 100.000

2,300 3,100 3,900 4,700 5,600

41 42 43 44 45

11 12 13 14 15

936 936 936 936 936

10,296 11,232 12,168 13,104 14.040

100.000 100,000 100,000 100,000 100,000

46 47 48 49 50

16 17 18 19 20

936 936 936 936 936

14.976 15.912 16,848 17.784 18,720

51 52 53 54 55

21 22 23 24 25

936 936 936 936 936

56 57 58 59 60

26 27 28 29 30

936 936 936 936 936

Annual Premium 936 936 936 936 936

Total Premium 29,016 29.952 30,888 31,824 32,760

Death Benefit 100.000 100.000 100,000 100.000 100.000

Cash Value 33,900 35.600 37,400 39.200 41,100

Reduced Paid-Up Amount 79.500 80,600 81.800 82.900 84.100

61 62 63 64 65

End of Year 31 32 33 34 35

66 67 68 69 70

36 37 38 39 40

936 936 936 936 936

33,696 34.632 35,568 36.504 37,440

100.000 100,000 100,000 100.000 100000

42.900 44.700 46,600 48,400 50.300

71 72 73 74 75

41 42 43 44 45

936 936 936 936 936

38,376 39,312 40,248 41,184 42.120

100.000 100.000 100,000 100.000 100.000

76 77 78 79 80

46 47 48 49 50

936 936 936 936 936

43,056 43,992 44,928 45,864 46,800

81 82 83 84 85

51 52 53 54 55

- 936 936 936 936 - - 936

86 87 88 89 ' 90

56 57 58 59 60

936 936 936 936 936

Age

Extended Term Ins Yrs Days 16 16 15 15 15

294 137 355 208 70

85.000 85.900 86.800 87.600 88,400

14 14 13 13 13

278 118 334 172 15

52,200 54.100 55.900 57,700 59,400

89 200 90.000 90,600 91.200 91,700

12 12 11 11 10

232 80 284 132 332

100.000 100,000 100.000 100,000 100,000

61.200 62,800 64,500 66.100 67,700

92.300 92.700 93.300 93,700 94,200

10 10 9 9 8

201 38 271 130 350

47,736 48.672 49,608 50.544 51,480

100,000 100,000 100,000 100,000 100,000

69,200 70,700 72.200 73,500 74.900

94 500 94.800 95,200 95,400 95.900

219 8 83 8 7...325 205 7 98

52,416 53.352 54.288 55,224 56,160

100,000 100,000 100.000 100,000 100,000

76.100 77,300 78,400 79,50Q 80,600

96.100 96,300 96,500 96.700 97.000

6

6 6 5

341 249 141 17 278

$100,000 Non-Participating Whole Life Certificate Contract Premium: $78.00 Monthly

$100,000 Non-Participating Whole Life Certificate Contract Premium: $78.00 Monthly

Age

Riders This illustration contains no riders.

-SPJST-

Whole Life Insurance

Another feature of whole life insurance is that the premiums for these certificates remain level for the life of the contract ... even if the insured should suffer an illness that would greatly increase the risk of death, the premium will never increase.

Annual Premium

tinue the certificate for the face amount less indebtedness, but only for a limited time period; or 3) Use the cash value to continue the certificate for a reduced paid-up.

Extended Term Ins Yrs Days

Annual Premium

0 0 0 3 6

0 0 166 225 216

91 92 93 94 95

61 62 63 64 65

936 936 936 936 936

Total Premium 57,096 58,032 58,968 59,904 60,840

15,100 19,400 23,400 27,000 30,800

9 11 13 15 16

182 298 236 12 100

96 97 98 99 100

66 67 68 69 70

936 936 936 936 936

61,776 62,712 63,648 64.584 65,520

6.600 7,600 8,600 9.600 10,700

34,700 38,300 41,500 44,300 47.300

17 18 18 19 19

142 74 283 53 176

100.000 100,000 100,000 100.000 100,000

11,800 13,000 14,200 15,500 16.800

50,000 52,800 55,400 57,900 60,300

19 19 19 19 19

240 300 314 327 303

19,656 20,592 21.528 22.464 23,400

100,000 100,000 100,000 100,000 100,000

18.200 19,600 21.000 22,500 24,000

62,600 64,800 66,700 68,600 70,400

19 19 19 19 18

279 223 140 61 323

24,336 25,272 26,208 27,144 28.080

100,000 100,000 100,000 100,000 100.000

25.500 27,100 28,800 30,400 32,100

71,900 73.600 75,300 76,600 78,000

18 18 17 17 17

202 86 341 196 57

Age

End of Year

Death Benefit 100.000 100,000 100,000 100,000 100,000

Cash Value 81,800 82,900 84,200 85,600 87,200

Reduced Paid-Up Amount 97,300 97,400 97.600 97,900 98,200

100,000 100,000 100,000 100,000 100,000

88,900 90,800 92,600 94.000 100,000

98.400 98,800 99,100 99.200 100,000

Extended Term Ins Yrs Days 5 4 4 3 3

159 348 200 341 158

2 1 1 0 0

278 342 102 362 0

This is page one of a three-part Whole Life illustration table. Parts For more information on the SPJST Whole Life Insurance plans, con-

Two and Three appear in the right column.

tact your local lodge sales representative.

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

8

Illustration Three: Adult 20 Pay Life This illustration is being provided to help you better understand SPJST's Adult 20-Pay insurance plan. The text and accompanying tables have been calculated for a 30-year old male in the "Preferred" risk class rating and applying for an Adult 20 Pay Life NonParticipating Whole Life Insurance certificate with guaranteed level premiums.

20 Pay Life: How Its Different A person who purchases a 20-pay lie insurance certificate really has a whole life certificate for which he or she will pay the premiums for 20 years. At the end of this period, the premiums are no longer payable, yet the life insurance protection continues for the remainder of the insured's lifetime or until age 100 when the policy would pay its face value.

Whole Life Insurance The Whole Life certificate below and at right offers permanent protection with guaranteed premiums, cash values and death benefits; Adult 20 Pay Life is a Non-Participating Whole Life Insurance certificate with guaranteed level premiums to age 50.

Because the premium-paying period for limited pay life certificates is of shorter duration than traditional whole life, the premiums are higher. It's the same principle that applies to buying merchandise on an installment plan; the payment for a three-year period wilt be higher than the payments for a five-year period. However, the total paid under either plan should approximate the other. The same is true with Adult 20 Pay Life certificates: though each premium is higher, the total amount payable would be about equal to the total amount payable on a traditional whole life.

Underwriting Class: Non-Smoker The premiums required for this coverage have been calculated assuming this certificate is issued in the NonSmoker underwriting class. Actual premiums required for the insurance coverage will ultimately depend on the outcome of the underwriting process, and may vary from what is shown on this illustration. If so, you will receive a revised illustration with your insurance certificate.

Initial Insurance Benefit

Another important difference .. is that limited pay pay certificate cash values build up at a much faster rate than do whole life certificate cash values.

Introduction to Life Underwriting Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

The death benefit provided at issue is assumed to be $100,000. The death benefit is the amount payable in the event of death, as stated on the front page of a certificate. The actual amount payable may be decreased by loans.

Contract Premium Provided the Contract Premium of

$112.00 is paid monthly, the Initial Surrender the certificate for its cash Insurance Benefit of $100,000 is guar- „value; 2) Use the cash value to continue the certificate for the face amount anteed to be paid. less indebtedness, but only for a limited time period; or 3) Use the cash Options At Lapse If a premium is unpaid at the end of value to continue the certificate for a reduced paid-up. the grace period and the certificate has a Net Cash Value, and if the certificate has no Automatic Premium Loan pro- Riders This illustration contains no riders. vision in force, any one of the follow-SPJST---ing options may be elected: 1) $100,000 Non-Participating Whole Life Certificate

Contract Premium: $112.00 Monthly

Extended Term Ins Yrs Days 0 0 0 0 3 273 8 113 325 12

Cash Value 0 0 800 1,800 3,000

Reduced Paid Up Amount 0 0 6,000 12,900 20,500

1,344 1,344 1,344 1,344 1,344

8,064 9,408 10,752 12,096 13,440

100,000 100,000 100,000 100,000 100,000

4,100 5,400 6,700 8,000 9,500

26,800 33,800 40,100 45,900 52,100

16 19 21 22 24

33 13 72 298 136

11 12 13 14 15

1,344 1,344 1,344 1,344 1,344

14,784 16,128 17,472 18,816 20,160

100,000 100,000 100,000 100,000 100,000

11,000 12,500 14,100 15,900 17,600

57,800 62,900 67,900 73,400 77,800

25 26 27 28 28

191 140 62 10 200

46 47 48 49 50

16 17 18 19 20

1,344 1 344 1,344 1,344 1,344

21,504 22848 24,192 25,536 26,880

100,000 100,000 100,000 100,000 100,000

19,500 21,500 23,500 25,700 28,000

82,700 87,400 91,600 96,000 100.000

29 29 30 31 50

60 284 113 27 0

51 52 53 54 55

21 22 23 24 25

0 0 0 0 0

26,880 26,880 26,880 26,880 26,880

100,000 100,000 100,000 100,000 100,000

29,100 30,300 31,600 32,900 34,200

100,000 100,000 100.000 100,000 100,000

49 48 47 46 45

0 0 0 0 0

56 57 58 59 60

26 27 28 29 30

0 0 0 0 0

26,880 26,880 26,880 26,880 26,880

100,000 100,000 100,000 100,000 100,000

35,500 36,900 38,300 39,800 41,200

100,000 100,000 100,000 100,000 100,000

44 43 42 41 40

0 0 0 0

31 32 33 34 35 36 37 38 39 40

6 7 8 9 10

41 42 43 44 45

•

Reduced Paid-Up Amount 100,000 100,000 100,000 100,000 100,000

66 67 68 69 70

36 37 38 39 40

0 0 0 0 0

26,880 26,880 26,880 26,880 26,880

100.000 100,000 100,000 100,000 100,000

50.500 52,100 53,700 55,400 57,000

71 72 73 74 75

41 42 43 44 45

0 0 0 0 0

26,880 26,880 26,880 26,880 26,880

100,000 100,000 100,000 100,000 100,000

76 77 78 79 80

46 47 48 49 50

0 0 0 0 0

26,880 26,880 26,880 26,880 26,880

81 82 83 84 85

51 52 53 54 55

0 0 0 0 0

86 87 88 89 90

56 57 58 59 60

0 0 0 0 0

Extended Term Ins Yrs Days 39 38 37 36 35

0 0 0 0 0

100,000 100,000 100.000 100,000 100,000

34 33 32 31 30

0 0 0 0 0

58,600 60.200 61,800 63,400 64,900

100.000 100,000 100,000 100,000 100,000

29 28 27 26 25

0 0 0 0 0

100,000 100.000 100,000 100,000 100.000

66.400 67.800 69.200 70,600 72,000

100,000 100,000 100,000 100.000 100,000

24 23 22 21 20

0 0 0 0 0

26,880 26,880 26,880 26,880 26 880

100000 1'00,000 100.000 100.000 100,000

73,300 74,600 75,900 77,100 78,200

100,000 100.000 100 000 100,000 100 000

19 18 17 16 15

0 0 0 0 0

2b,880 26,880 26,880 26,880 26.880

100,000 100,000 100,000 100,000 100.000

79,300 80,300 81,300 82.300 83,200

100.000 100 000 100.000 100.000 100.000

14 13 12 11 10

•

0 0 0 0 0

Contract Premium: $112.00 Monthly

Death Benefit 100,000 100,000 100,000 100,000 100,000

Age

Cash Value 42,700 44,300 45,800 47,400 49,000

$100,000 Non-Participating Whole Life Certificate

Total Premium 1,344 2,688 4,032 5,376 6,720

Annual Premium 1,344 1,344 1,344 1,344 1,344

Death Benefit 100,000 100,000 100,000 100,000 100,000

61 62 63 64 65

Age

$100,000 Non-Participating Whole Life Certificate Contract Premium: $112.00 Monthly End of Year 1 2 3 4 5

0 0 0 0

Total Premium 26,880 26,880 26,880 26,880 26,880

Annual Premium

End of year 31 32 33 34 35

91 92 93 94 95

End of Year 61 62 63 64 65

96 97 98 99 100

66 67 68 69 70

Age

Annual Premium 0 0 0 0 0 0 0 0 0 0

Total Premium 26,880 26,880 26,880 26,880 26,880

Death Benefit 100,000 100,000 100,000 100,000 100,000

26,880 26,880 26,880 26,880 26,880

100,000 100,000 100.000 100,000 100,000

•

Cash Value 84,200 85,200 86,300 87,600 88,900

Reduced Paid-Up Amount 100,000 100,000 100,000 100,000 100,000

90,400 92000 93,600 94,800 100,000

100,000 100.000 100,000 100,000 100,000

Extended Term Ins Yrs Days 9 8 7 6 5

0 0 0 0 0

4 3 2 1 0

0 0 0 0 0

This is page one of a three-part 20 Pay Life illustration table. Parts For more information on the SPJST 20-Pay Life Insurance plans, contact your local lodge sales representative.

Two and Three appear in the right column.

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

Illustration Four: Modified Term This illustration is being provided to certificate, renewable until age 95. It help you better understand SPJST's provides a death benefit to your selectModterm life insurance, plan. The text ed beneficiary in the event of your and accompanying table have been cal- death while the certificate is in effect. culated for a 30-year old male in the "Preferred" risk class rating and apply- Underwriting Class: ing for a ten-year renewable and con- Non-Smoker The premium outlay for this coververtible term life insurance certificate, age has been calculated assuming this renewable to age 95. certificate is issued in the Non-Smoker underwriting class. Actual premiums Term Life Insurance The certificate depicted below and at for the insurance coverage will ultiright represents a Ten-Year Renewable mately depend on the outcome of the and Convertible Term Life Insurance underwriting process, and may vary from what is shown on this illustration.

If so, you will receive a revised illustration with your insurance certificate.

Term life insurance provides life insurance protection for a specified period of time, or term; hence its name. it provides for payment of the face'amount benefit only if the insured dies during that period. For example, assume that larry purchases a five-year, $50,000 level term certificate on his life. He names his sister, Loretta, as his beneficiary.

If Larry dies at any time during the certificate's five-year period, Loretta will receive the $50,000 death benefit. If Larry lives beyond the fiveyear period, nothing is payable. The policy's term has expired Term insurance is simply a rented lie insurance estate, providing protection for a term of years.

Introduction to Life Underwriting Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

Designed for: John Doe Male. Age 30

First Year Premium: $13.00 Monthly Guaranteed Assumptions The initial premium is guaranteed for the first The certificate year. premium may change after the first certificate year, but can never exceed the maximum premium.

Not-Guaranteed Assumptions

Guaranteed Premium Outlay

Death Benefit

Current Premium Outlay

Death Benefit

Age

Year

30 31 32 33 34

1 2 3 4 . 5

156 216 216 216 216

100.000 100.000 100,000 100,000 100.000

156 156 156 156 156

100.000 100.000 100.000 100.000 100.000

35 36 37 38 39

6 7 8 9 10 1 - 10

216 216 216 216 216 2,100

100.000 100.000 100.000 100,000 100,000

156 156 156 156 156 1,560

100.000 100,000 100.000 100.000 100,000

40 41 42 43

11 12 13 14 15.

384 384 384 384 384

100,000 100.000 100,000 100.000 100.000

252 252 252 252 252

100.000 100,000 100.000 100,000 100,000

16 17 18 19 20 1 - 20

384 384 384 384 384 5,940

160,000 100.000 100.000 100.000 100.000

252 252 252 252 252 4.080

100,000 100,000 100.000 100.000 100,000

50 51 52 53 54

21 22 23

852 852 852 852 852

100,000 100,000 100,000 100,000 100.000

528 528 528 528 528

100,000 100.000 100,000 100,000 100.000

55 56 57 58 59

26 27 28 29 30 1 - 30

852 852 852 852 852 , 14,460

100.000 100,000 100.000 100.000 100.000

528 528 528 528 528 9.360

100.000 100,000 100,000 100,000 100,000

44

Current

After the 10th certificate year, the certificate may be renewed for additional 10-year periods until age 70.

At age 70, the may be certificate annually for renewed one-year term periods.

Premiums may be less Guaranteed the than Maximum premiums.

Contract Premium and Renewal The initial contract premium is $13.00 monthly, and is guaranteed by the Society for the first certificate year.

The premium may change after the first certificate year, but can never exceed the maximum premium.

At the end of each term period and prior to the insured's age 70, the certificate may be renewed for another term period without evidence of insurability at the premium rate, according to the then current rates, for the attained age of the insured. At the insured's age 70, the certificate will automatically renew on an annual basis for a one-year term period prior to the insured's 95th birthday.

$100,000 Ten-Year Renewable & Convertible Term Certificate

Underwriting Class: Non-Smoker Term Insurance Benefit: $100,000

Insurance Benefit The death benefit provided at issue is assumed to be $100,000. The death benefit is the amount payable in the event of death, as stated on the front page of a certificate. The actual amount payable may be decreased by loans.

9

Cash Surrender Value This certificate does not provide a cash value.

may not exceed the death benefit in effect under the term life insurance certificate at the date of conversion.

Conversion Option Prior to age 65, the certificate may be converted to any form of life insurance (other than term insurance) then being offered by the Society. The amount of death benefit under the new certificate

Riders Any riders in effect under the term life insurance certificate may be continued under the new certificate only with the approval of the Society.

—SPJST-

Designed for: John Doe Male, Age 30

$100,000 Ten-Year Renewable & Convertible Term Certificate

Underwriting Class: Non-Smoker

Guaranteed

Term Insurance Benefit: $100,000 First Year Premium: $13.00 Monthly Guaranteed Assumptions The initial premium is guaranteed for the first The certificate year. premium may change after the first certificate year. but can never exceed the maximum premium.

Not-Guaranteed Assumptions Current

After the 10th cenificate year, the certificate may be renewed for additional 10-year periods until age At age 70. the 70. certificate may be annually for renewed one-year term periods.

Premiums may be less than the Guaranteed Maximum premiums.

Designed for: John Doe Male, Age 30

-

First Year Premium: $13.00 Monthly

Current

Death Benefit

Premium Outlay

Death Benefit

Age

Year

60 61 62 63 64

31 32 33 34 35

2,208 2,208 2,208 2,208 2,208

100,000 100,000 100,000 100,000 100,000

1,248 1,248 1,248 1,248 1,248

100,000 100.000 100,000 100.000 100.000

65 66 67 68 69

36 37 38 39 40 1 - 40

2,208 2,208 2.208 2,208 2,208 22,080

100.000 100.000 100.000 100.000 100.000

1,248 1.248 1,248 1.248 1.248 12,480

100.000 100.000 100.000 100.000 100.000

70 71 72 73 74

41 42 43 44 45

5,520 5,712 5,892 6,072 6,264

100,000 100,000 100.000 100.000 100,000

3.132 3.504 3.924 4,392 .' 4,896

100.000 100.000 100.000 100.000 ' 100.000

75 76 77 78 79

46 47 48 49 50 1 - 50

6,900 7,572 8.280 9,048 9,888 93,228

100,000 100.000 100,000 100.000 100.000

5.436 6.012 6.612 7,272 8.004 65,664

100.000 100.000 100.000 100:000 100.000

80 81 82 83 84

51 52 53 54 55

• 10,824 11,880 13,068 14,328 15,672

100,000 100.000 100.000 100.000 100.000

8.820 '8.756 10.800 11.928 13.128

100.000 100.000 100.000 100.000 100.000

85 86 87 88 89

56 57 58 59 60 1 - 60

17,052 18,456 19,872 21,336 22,860 258.576

100.000 100.000 100,000 100,000 100,000

14.388 15,684 17.004 18,384 19.836 205.392

100.000 100.000 .100.000 100.000 100.000

$100,000 Ten-Year Renewable & Convertible Term Certificate

Underwriting Class: Non-Smoker Term Insurance Benefit: $100,000

Premium Outlay

Guaranteed Age

Year

90 91 92 93 94

61' 62 63 64 65

Premium Outlay 24,480 ' 26,256 28.356 .31,176 35,400

Current

Death Benefit

Premium Outlay

Death Benefit

100,000 100,000 100.000 100,000 100.000

21,384 23.100 25.116 27,816 31,800

100,000 100.000 100.000 100.000 100.000

Guaranteed Assumptions The initial premium is guaranteed for the first The certificate year. premium may change after the first certificate year, but can never exceed the maximum premium.

Not-Guaranteed Assumptions Current

45

46 47 48 49

24

25 '

After the 10th certificate year, the certificate may be renewed for additional 10-year periods until age At age 70. the 70. be certificate may for annually renewed one-year term periods.

Premiums may be less the Guaranteed than Maximum premiums.

This is page one of a three-part 10-year Mod-Term illustration table. For more information on SPJST 10-Year and 20-Year Mod-Term Parts two and three appear in the right column. insurance, contact your local lodge sales representative.

10

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

Lone Pay Life: Not Just for Children M 11 othing warms our hearts more than giving a gift to a child, especially when we're doing something for one of our children or grandchildren. Though most of the things we give them don't last very long, there is one gift that never wears out or breaks. One gift they can never outgrow. That is the gift of an SPJST Lone Pay Life insurance certificate.

Most youngsters are in good health and can qualify for life insurance at standard rates. However, as they grow older, many may fail to qualify as standard risks because of health, occupations or hobbies. By starting his or her life insurance now, before those conditions occur, a child can obtain life insurance with no exclusions, restric tive clauses or additional charges.

Only One Premium Payment As its name suggests, the purchaser of a Lone Pay life certificate makes only one premium payment, resulting in a paid-up certificate. For that reason, it has long been a favorite of parents and grandparents seeking to enroll their children and grandchildren in the

SPJST. However, did you know that a Lone Pay Life certificate can be, issued to qualifying individuals up to age 80?

As you would expect, at the older issue ages, it can be expensive; however, it could be just the ticket for older members who want to buy additonal permanent insurance. For example, a female at age 70 can purchase additional paidup insurance at the rate of $570 per $1,000 coverage with a mimimum purchase of $5,000 coverage. The Lone Pay life certificate may also be of interest to anyone wishing to make a gift of life insurance to a college, church, charitable organization or individual.

Accumulates Cash Value An SPJST Lone Pay Life certificate also builds a valuable cash fund that can be used to help pay for a college education, provide a down payment on a home, provide money to start a new business, or as an emergency fund.

Please refer to the accompanying tables for additonal details on how an SPJST Lone Pay Life certificate can work for you!

-SPJST-

SPJST Lone Pay Life Basic Premiums per $1,000 *sue Age

Male

Female

Issue Age

Male

Female

0

$ 67

$ 55

41

$269

1

68

56

42

279

2

70

3

72

4 5 6 7 8 9 10

75 77 80

57 59 61 63 65

$226 234 243 251

82

11

95

12

13

43

288

44

299

45 47

309 320 331

67

48'

342

85

69

89

72

92 99

74 77 80

49 50 51

102

83

59 60 61

353 365 377 389 402 415 427 440 454 467 481 495 509

62

523

451

63 64 65 66 67 68 69 70 71

537 551 565 579 594 608 622 636 650 664 678 692 705 717 729 741 753 765

465

14

106

86

15

110

89

16 17 18 19 20

113

21

133

22

137

92 95 99 102 106 110 114

23

142

118

24

127

26

146 151 157

27

162

25

117 121 125 129

122

28

168

131 136' 141

29

174

146

30

181

31

187

32 34

194 201 209

152 157 163

35

217

36

225 233 242 250 260

33

37 38

39 40

169 176 182 189 196 203 211 219

46

52 53 54 55 56 57

58

72 73 74 75

76 77 78 79 80

no

269 278 288 297

307 318

328 339 350 362

373 385 398 410

424 437

479 494 509 523 539 554 570 586 602 618 634 650 666 681 696 711

726

EXAMPLES OF THE LONE PAY LIFE PLAN IN ACTION MALE INSURED'S LIFE INSURANCE LONE PAY CASH VALUE CASH VALUE CASH VALUE AGE PROTECTION PREMIUM IMMEDIATE 10 YEARS AGE 65 2 $10,000 $ 670 $5,060 $ 700 $ 450 10,000 1,810 1,320 30 2,020 5,060 3,650 3,020 10,000 50 4,330 5,060

Senior Life: When You Need More How much is your life- worth?

And how much did you insure it for? Two tough questions. Questions that get even tougher as you get older.

Now, thanks to SPJST's two Senior Life insurance plans, there may be some answers for you.

The SPJST Senior Life Plan is for people in good health who can correctly answer no to the general health questions on the application. The SPJST Senior Life Graded Benefit Plan is for people with some health problems but are still found to be eligible.

This plan has some limitations on coverage.

The Senior Life Graded enefit pro vides an accidental death benefit for the full amount of the certificate immediately for the first three years. The death benefit from other causes is the refund of premiums, plus 20 percent. After

three years, both Senior Life plans provide exactly the same benefit.

No doctor's examination is necessary and the coverage cannot be canceled, so long as premiums are paid.

Moreover, the Senior Life plan has a guaranteed cash value and a certificate loan benefit.

Under the terms of the Senior Life Plan, the smallest amount of insurance that you can purchase is $5,000. Using the table below, you can see that the cost per $1,000 coverage for a 63-year old male is $6.23 monthly and $69.21 annually. For $5,000 insurance, that would amount to a monthly premium of $55.85 and an annual premium of $620.35.

For more information on the SPJST Senior Life certificate or an application form, please contact your local lodge sales representative.

-S PJ ST-

SPJST Senior Life Basic Rates per $1,000 $5,000 Minimum • $15,000 Maximum per Person Age

Male Annual Premium

Male Monthly Premium

Female Annual Premium

50 51 52 53 54 55 56 57 58 59 60 61 62

37.32 39.01 40.79 42.67 44.66 46.77 49.01 51.38 53.91 56.60 59.48

3.36 3.52 3.68 3.85 4.02 4.21 4.42 4.63 4.86 5.10 5.36 5.63 5.93 6.23 6.56 6.90 7.27 7.66 8.07 8.51 8.99 9.49 10.03 10.59 11.17 11.78 12.41 13.07 13.78

28.58 29.65 30.79 31.99 33.25 34.60 36.03

63

64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80

62.53 65.78

69.21 72.83 76.66 80.71 85.04 89.59 94.53 99.80 105.41 111.35 117.58 124.07 130.82 137.84 145.21 153.02 161.33 170.16

14.52 15.32

37.57 39.23 41.02 42.95

45.03 47.25

49.62

52.15

54.84 57.73 60.85 64.26 67.99 72.08 76.52 81.31 86.46 91.96 97.83 104.12 110.91 118.27 126.29 135.02

Female Monthly Premium 2.58

2.67 2.78

2.88 3.00

3.12

3.25 3.39 3.54 3.70 3.87 4.06 4.26

4.47

4.70 4.94 5.20 5.48 5.79 6.12 6.49 6.89 7.32

7.79 8.28 8.81 9.38 9.99 10.65 11.37 12.16

Right for the Times: Fraternalism and Fraternal Life Insurance Fraternalism and Fraternal Life Insurance are founded upon the principle that every individual is in truth his or her "brother's keeper" and that each of us has a responsibility to others.

This spirit of brotherhood was expressed in loosely organized and semireligious societies of ancient Greece, which rendered flnanciai aid to their members in time of sickness and death. In the early days of the Roman Empire, similar societies collected funds from their n are and held them in trust to PFy .fOr memhsrs' funerals and Iraem.a.:!

Fraternalism has survived because it is good and it deserves to live. Its leaders had a keen realization of the world's need for Fraternalism and the power to see into the future. The lives of these leaders are a challenge to fraternalists today-society officials, local secretaries and field workers.

A glorious future looms ahead for the fraternal system with even greater opportunities for serving people; if we accept the challenge and up to our opportunities.

Introducfon to Life Underwriting

Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

Annuities Add Value to Membership

Based on the current annualized rate of 6.25 percent, a $10,000 initial payment would be valued at $44,646 in 25 years. For the benefit of parents and grandparents who are purchasing an annuity for an infant, the illustration also shows the projected value of a $10,000 initial payment at an annualized rate of 6.25 percent interest after 65 years - $514,409!

The SPJST annuity: It's something to consider-for yourself, or as a gift for someone special. For more information on purchasing an SPJST annuity or an illustration that addresses your special needs, please contact your local sales representative.

-SPJSTINTEREST RATES ANNUITY I

(Certificates Issued Prior to 4-1-93)

5.25% Annualized Effective 5-1-98 through 7-31-98

ANNUITY II

(Certificates Issued 4-1-93 and After)

Traditional IRAs Offer Security true of employer plans, and

To illustrate how your money can grow in an SPJST annuity account, the illustration reproduced below tracks an initial payment of $10,000 at yearly intervals for a period of 25 years.

What's an Annuity?

Many people buy homes even though they have no intention of ever living in them. Instead, they lease the property and collect rent at regular intervals. They have made an investment of capital for the sole purpose of producing a regular income. An annuity is a similar kind of arrangement ...

The basic purpose of an annuity is to distribute a regular, guaranteed lifetime income through a scientific liquidation of invested capital.

Annuities start with a sum of money that has either been paid in a lump sum (single pay annuities) or has been accumulated through payments over a number of years (deferred annuities). In planning for retirement, a person may want to "send money ahead" by making regular payments to an annuity years before retirement. At retirement, the annuity will be ready to make payments back to supplement retirement Income ... Some people may want to take the cash values from permanent life insurance, or perhaps a large sum of money from a company profit-sharing plan, and buy a single pay annuity that will start to provide income right away.

6.25% Annualized Effective 5-1-98 through 7-31-98

introduction to Life Underwriting Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

A Deferred Annuity Illustration Single Premium Deferred Annuity - Form SPJST-ANN-4 - A Single Premium Deferred Annuity Designed for: John Doe Male, Age 0

Initial First Year Deposit: $10,000 Guaranteed - 3.00%

Current - 6.25%

Cash Surr Value

Free Withdrawal

Accum Value

9,283 9,655

1,000 1,020 1,051 1,082 1,115

10,421 11,072 11,764 12,499 13,280

9,478 10,169 10,911 11,706 12,558

1,000 1,042 1,107 1,176 1,250

1,148 1,183

14,110 14,992 15,929 16,925 17,982

13.599 14,720 15,929 16,925 17,982

1,328 1,411

Cash Surr Value

Yearly Prem

Total Prem

0 1 2 3 4

10,000

10,000 10,000 10,000 10,000 10,000

10,203 10,509 10,824 11,149 11,483

10,042 10,444 10,861

6 7 8 9 10

5 6 7 8 9

0 0 0 0 0

10,000 10,000 10,000 10,000 10,000

11,828 12,183 12,548 12,925 13,312

11,401 11,963 12,548 12,925 13,312

11 12 13 14 15

10 11 12 13 14

0 0 0 0 0

10,000 10,000 10,000 10,000 10,000

13,712 14,123 14,547 14,983 15,433

13,712 14,123 14,547 14,983 15,433

19,106 20,301 21,569 22,917 24,350

19,106 20,301 21,569 22,917 24,350

16 17 18 19 20

15 16 17 18 19

0 0 0 0 0

10,000 10,000 10,000 10,000 10,000

15,896 16,373 16,864 17,370 17,891

15,896 16,373 16,864 17,370 17,891

25,872 27.489 29,207 31,032 32,972

25,872 27,489 29,207 31,032 32,972

21 22 23 24 25

20 21 22 23 24

0 0 0 0 0

10,000 10,000 10,000 10,000 10,000

18,428 18,980 19,550 20,136 20,740

18,428 18,980 19,550 20,136 20,740

35,032 37,222 39,548 42,020 44,646

35,032 37,222 39,548 42,020 44,646

61 62 63 64 65

60 61 62 63 64

0 0 0 0 0

10,000 10,000 10,000 10,000 10,000

60,111 61,915 63,772 65,685 67,656

60,111 61,915 63,772 65,685 67,656

395,937 420,683 446,975 474,911 504,593

395,937 420,683 446,975 474,911 504,593

66

65

0

10,000

68,294

68,294

514,409

514,409

Yr

Age

1 2 3 4 5

0 0

Withdrawal

Accum Value

11

Free Withdrawal

withdrawals, if any, are assumed to be made at the beginning of the calendar year. Accumulation and cash surrender values are as of the end of the calendar year.

For more information on SPJST Annuities, contact your local lodge sales representative.

Today, one of the greatest challenges facing American workers is assuring their financial security in retirement. With uncertainty over the adequacy of Social Security to meet the needs of future retirees, Americans now and in the future will be forced to rely more heavily on their own resources to support their retirement lifestyle.

At the same time, the world of employee-based pensions is changing, too. Much less common today is the employer-sponsored defined benefit plan, the kind of plan that assures former employees of a dependable income throughout their retirement years. The pension world is changing to one in which employees must make the decision to save for retirement. And, even when an employer plan is available, employees may be required to make most or all of the contributions.

How can I begin to save for retirement?

•flexibility, because there is no minimum contribution in any year, and you choose your own investments and financial organization.

Who can contribute, and how much?

The requirements for contributing to an IRA are few.

You can contribute: • if you are under age 701/2, • if you have earned income from employment, • up to a maximum of $2,000 ($4,000 for spouses).

Are all traditional IRA contributions tax deductible?

One of the immediate benefits of contributing to an IRA is a tax deduction many receive on their income taxes.

IRA contributors receive a 100 percent deduction on their annual contribution if

Individual retirement arrangementsIRAs-are one of the most viable answers to the question of how to assure a secure retirement.

• they do not receive benefits under an employer retirement plan, or (if they do)

Traditional IRAs offer: • independence, and can be opened and funded without any employer participation,

• earn no more than $40,000 if married and filing jointly, $25,000 if filing singly. These amounts increase beginning in 1998, and continue to increase through 2007 and 2005, respectively.

• immediate tax benefits, with contributions and/or earnings taxdeferred until retirement, • accessibility, with funds always available, something not generally

For those who are participants in an employer plan, IRA deductibility is gradually phased out above these income levels.

(Continued on next page 12.)

SPJST Annuities.

Adding Value to Your Membership.

SPJST Annuities provide a means of using principle and interest to provide income beginning the date you choose and the period you choose.

To illustrate how your money can grow in an SPJST annuity account, an initial payment of $10,000 in an Annuity II account at the current annualized rate of 6.25 percent, would be valued at $32,972 in 20 years.

For the benefit of parents and grandparents who are purchasing an annuity for an infant, the projected value of a $10,000 initial payment at an annualized rate of 6.25 percent interest after 65 years would be $514,409.

The SPJST annuity. It's something to consider - for yourself, or as a gift for someone special. For an annuity illustration that addresses your special needs, please contact your local lodge sales representative or the SPJST Home Office.

12

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

IRAs at a Glance

By Keith D. Gatewood, FIC State Field Representative retirement should be a time of peace and contentment. Proper planning can see you through to that point in your life. Using a traditional Individual Retirement Annuity, or IRA, is an excellent means of providing for a retirement supplement. The tax-deductible deposits combined with tax-deferred growth are an attraction to many people concerned with providing needed retirement funds.

Each person who has an IRA, whether it is with the SPJST or not, is subject to the same basic government guidelines. There are two basic requirements pertaining to withdrawals from an IRA. The first deals with withdrawals from the account prior to age 59 1/2.

Any withdrawal from an IRA prior to age 59 1/2, is subject to normal income taxes PLUS a 10 percent penalty tax. With the Taxpayer Relief Act of 1997, certain exceptions to the penalty tax were created for "qualified distributions." Those exceptions are as follows: Qualified: • MediCal Expenses • Education Expenses • First-Time Home Purchase • Unemployment (under certain conditions) Mandatory Distribution The second basic requirement dealing with distributions from an IRA occurs at age 70 1/2. By April 1 of the year following the ,year the IRA holder turns 70 1/2, a governmentmandated minimum distribution must be taken. The amount required to be withdrawn is based on a formula using the fund value and life expectancy.

In sufficient time to do proper planning, the SPJST will notify the member in writing of the minimum distribution amount. The member will then have the choice to select the particular scenario for receiving the distribution funds. The forms that are sent regarding this matter detail in specific dollar amounts and how much'can be taken under several different payout options.

Because the government places .a stiff penalty (a 50 percent penalty tax) on failure to draw the minimum amount when required, the SPJST provides timely notice to help prevent this penalty tax from being charged.

The SPJST is concerned with providing the best member services possible. A special warning, however, the SPJST can only give details pertaining to an IRA established within the Society. Any IRA established outside the SPJST would require you to consult with the appropriate representatives of that institution for minimum distribution requirements.

If you have not taken advantage of the tax benefitS by purchasing an IRA, please call the SPJST Insurance Department or your local Sales Representative at (800) 727-7578, for more details.

--SPJST•

•

Should I contribute if I can't take a deduction?

Yes! There are significant benefits to making an IRA contribution even if it is not currently tax deductible.

A nondeductible contribution: • grows tax-deferred, with earnings sheltered from taxation until withdrawn, • has already been taxed, and will not be taxed again, and • whether deductible or nondeductible—is a step closer to a secure retirement.

Quite simply, no taxation, non-IRA investment of the same type will generate nearly the same earnings over a lifetime of saving as nondeductible IRA contributions will. (The new Roth IRA may also be similarly beneficial.)

Can IRA assets be moved?

Under certain circumstances an IRA holder may wish to move their IRA from one financial organization to another. IRA holders can take comfort in the fact that their IRA assets are always available ,to them.

They may be: • withdrawn (distributed) and redeposited elsewhere (called a "rollover"), or • moved to another organization by the transaction known as a trustee-to-trustee transfer.

Can other assets be combined in an IRA? Contributions made by an employer to a retirement plan known as a simplified employee pension (SEP) are actually contributed to an IRA, and can be combined with regular IRA contributions. Assets from a traditional "qualified retirement plan" can be moved to an IRA by rollover, but to protect the option of someday moving them–to another employer plan, are often best kept in a separate IRA that contains no other contributions.

When can I use my IRA assets?

Unlike most employer retirement plans in which access is limited to such events as change of employment, plan termination; reaching retirement age, death or disability, access to your IRA funds is guaranteed, always.

Until age 59 1/2, there is a 10 percent early distribution penalty unless you qualify for an exemption due to: • disability, • qualifying medical expenses, • qualifying education expenses, • unemployment (under certain conditions) • qualifying first home purchase, • death, or • receipt of your IRA assets in equal payments over your life expectancy.

Am I ever required to take funds from my IRA? Beginning in the year that an IRA holder turns age 70 1/2, distributions must begin. These distributions are based generally on the person's IRA account balance divided by their life expectancy, either singly or jointly with their IRA beneficiary. Since then purpose of IRAs is to provide for retirement—not to be a tax shelter—IRA holders who fail to take their required distributions are subject to penalty.

—SPJST-

Makes the New Roth IRA Unique?

What

B eginning January 1, 1998, you have a new way to invest your retirement dollars: The Roth IRA. Concern regarding the instability of Social Security continues to grow, and Americans are looking for new ways to secure their financial future. The Roth IRA gives you the ability to invest your after-tax dollars today, let the investment grow taxdeferred, and withdraw your principal and earnings tax-free after five years.

(You may be subject to a 10 percent penalty on the earnings if taken before age 59 1/2.)

Is investing for retirement important?

Many ideals are changing in today's society.

For instance: • The trend of changing employment more frequently does not allow individuals to acquire great reserves in company pensions plans.

• Many new entrepreneurs striking out on their own cannot offer retirement options to themselves or their employees until the company is more financially secure.

• Social Security is no longer seen as the answer to retirement funding.

Individuals need to take the lead in building their retirement nest egg.

What makes the new Roth IRA so unique?

Imagine for a moment that you have just received a paycheck from your company. You look at your payroll summary and notice that there are no federal income taxes withheld. Your initial reaction is that something is wrong. It's not, if this check is from your Roth IRA. Two factors make this possible: • First, the money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.

• Second, this retirement plan allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the plan for at least five years, those tax-deferred earnings become tax-free.

Who is eligible?

Unlike the Traditional IRA, there is no 70 1/2 age limit on making contributions. You simply need to have earned income equal to the amount you contribute up to a maximum of $2,000 ($4,000 combined for spouses) per year. (There are income thresholds which may reduce the amount you can contribute.)

How much can I contribute?

Individuals may contribute up to

$2,000 per year if their adjusted gross income (AGI) is less than $95,000. If an individual's AGI is between $95,000 and $110,000, they may contribute a reduced amount adjusted for their income. Married couples filing jointly may contribute up to $2,000 each if their AGI is less than $150,000.

Contributions for joint filers are reduced for AGI's between $150,000 and $160,000.

Roth IRA contributions may not be made by individuals with AGI of more than $110,000, or couples with AGI of more than $160,000.

When can I use my IRA assets?

If you satisfy two conditions, you may make tax-free and penalty-free withdrawals from your Roth IRA. First, the plan must have been open for a minimum of five years. Second, the withdrawal must be made after the occurrence of one of the following events: • age 59 112, • death, • disability, or • first home purchase.

Distributions which meet the above requirements are referred to as "qualifying distributions." While you may take distributions from your Roth IRA at any time, distributions which are not qualifying distributions will be subject to taxes (and in some cases early distribution penalties) to the extent they exceed your aggregate contributions to Roth IRAs. Can I move money from my traditional IRA to my Roth IRA? The answer is "Yes." There are specific rules that govern the process of rolling over funds from a Traditional IRA to a Roth IRA. Some of these rules include: • Your AGI must be less than $100,000.

• If you are married, you must file a joint income tax return.

• You must pay taxes on all the pretax dollars you move. Special tax rules apply for rollovers completed in 1998.

• The rollover must be completed within 60 days.

Our representative may suggest you seek advice from a competent tax advisor to confirm whether moving your funds is beneficial to you.

Am I ever required to take funds from my Roth IRA? Unlike the Traditional IRA, there are no required minimum distributions at age 70 1/2. Your earnings can continue to grow until you need them.

There are special requirements when these plans pass to your beneficiaries.

For More Information .

For more information on the benefits of the new Roth IRA, ask one of our representatives today for details.

—SPJST-

13

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

Buy a Home or Build a Business our home is a major investment y and it takes routine maintenance and upgrades to keep it looking good and maintain its value.

And speaking of value, here's something else you'll want to consider: An SPJST Home Loan. If you have a 30year note and have accumulated at least 25 percent equity in your home, you could be in line to save plenty.

For example, let's say you took out a 30-year loan for $100,000 in 1992 at 7.25 percent interest. That would leave you with a monthly payment of approximately $678 per month for 360 months. That translates to approximately $244,000 that you'd be expected to pay during the life of that loan. Or, to put it another way, you're paying approximately $2.50 for every $1 that you borrowed.

For the sake of discussion, let's say you've been making your payments, plus adding a little extra to the principal every month. You may be approaching the point where you have enough equity in the home to qualify for an SPJST mortgage loan. The SPJST's underwriting guidelines, as stipulated by the State of Texas, state that the SPJST may lend up to 75 percent of the appraised value on "first-class residential real estate."

Pay Now, Save Later Based on the information that has been presented, you could expect to refinance your remaining balance of $75,000 through the SPJST for 15 years at an interest rate of 7.25 percent. That would leave you with a monthly payment of approximately $684 per month for 180 months. It comes down to this: Refinancing would enable you to pay off your loan ten years sooner at a savings of

approximately $80,000. That amount directed into an SPJST annuity paying 6.25 percent would, in ten years, be worth approximately $146,000.

Your savings could be more or less — depending on your particular situation.

To get an accurate representation of what you could expect to save, please contact the SPJST 'Mortgage Lending Department. They can draft an illustration that will enable you to see how an SPJST mortgage loan can work for you.

Pay Now, Save Later Something else to consider: Unlike most commercial institutions, SPJST does not sell its mortgage notes to other financial institutions. Should you have a question, you know who to call. The basic philosophy underlying the mortgage lending program offered through the SPJST is that through joint effort and mutual self-interest, individuals and families may collectively achieve objectives unattainable by acting alone.

"For more than 70 years, the SPJST has been using its Mortgage Loan Program as one of its investment vehicles to invest the assets of the Society," says Secretary-Treasurer Lanita Anglin, who manages the Mortgage Lending Department.

In order to be considered for a mortgage loan with the SPJST, you or your spouse must be a member of the society.

Likewise, each immediate family is subject to a maximum financing limitation of $200,000.

The SPJST is currently offering home and farm mortgages with interest rates ranging from 7 percent on a 1 - 7 year note to 7.5 percent on a 16 - 20 year note and 7.5 percent on a 21 - 30 year note. —SPJST-

Buying a Home or Building a Business?

Let's Talk.

The SPJST makes home and farm loans.

You may already know that.

What may come as news is that we also make commercial loans to qualified members.

To get an accurate representation of what you could expect to save when making a new loan or refinancing through the SPJST, please contact the SPJST Mortgage Lending Department and ask to speak with Ann Paruzinski. She'll be able to draft an illustration that will enable you to see how an SPJST mortgage loan can work for you.

New, Lower Application Fees!

General Information on Real Estate Loan Applications Loan

applications must meet the requirements set by the SPJST. The following rules and requirements are intended to provide basic guidelines for informational purposes but may not include all applicable rules and requirements. At our option, the continuation of the mortgage loan program may be discontinued and current interest rates may change without notice.

Membership/ SPJST Life Insurance In order to be considered for a mortgage loan with the SPJST, you or your spouse must be a member of the SPJST. We recommend that you review your SPJST life insurance program with one of our sales representatives. Today, the monthly mortgage payment represents a major portion of the family budget.

Should either you or your spouse die prematurely, it may be impossible for the family to maintain payments on the home.

The SPJST has insurance plans that will insure your ability to keep your home and preserve the well-being of your loved ones. For information on available options, contact your local SPJST sales representative or call (800) 727-7578.

Maximum Loan Amount Our underwriting guidelines stipulate that we may lend up to 75 percent of the purchase price or director's value, whichever is less, on first-class residential real estate. For example, if the director's estimated value of the land and dwelling are $40,000, the maximum amount that can be financed on this security is $30,000.

Each immediate family is, subject to a maximum financing limitation of $200,000.

Income and Debt Qualification The proposed monthly mortgage payment should not exceed 28 percent of family gross income. The total of the mortgage payment and all other monthly debt obligations should not be greater than 36 percent of gross income.

Type of Security

The property offered as security must comply with one of the following descriptions: 1.0wner-occupied dwelling.

2.Rural or farm property on which there is or will be owner-occupied dwelling.

3.Farm or ranch property to be used as an owner-operated farm or ranch.

4.Selective commercial property when the property is used to conduct an owner-operated business.

(Financing is limited to the lesser of 75 percent of the purchase price or director's estimated value and terms of repayment are limited to 15 years.)

5.One- or two-family residential rental property. (Financing is limited to the lesser of two-thirds of the purchase price or director's estimated value and commercial interest rates apply.)

6.Double-wide pre-manufactured homes under special rules.

(Financing is limited to the lesser of two-thirds of the purchase price or director's estimated value.

Commercial interest rates apply and repayment term is limited to 10 years.)

In order to be considered for a mortgage loan with the SPJST, you or your spouse must be a member of the society. Likewise, each immediate family is subject to a maximum financing limption of $200,000.

Property deeded by a special warranty deed is limited to the financing of twothirds of the lesser of the purchase price or director's estimated value. All repayment terms are limited to 15 years and commercial interest rates will apply. The seller is limited to a financial institution with a minimum of $1,000,000 in capital.

For current interest rates and complete information on terms and conditions of SPJST's underwriting guidelines and details on how to apply for an SPJST mortgage loan, please call the Home Office at (254) 773-1575 and ask to speak with Ann Paruzinski in the Mortgage Lending Department.

Construction of Improvements If a loan is requested for the construction of a dwelling, copies of bids and/or contracts are required. The director's estimated value will be based on the value of the land as well as the plans and

specifications included with the contract.

A loan cannot be funded until the improvements are 100 percent complete according to the plans and specifications submitted.

In order to comply with Texas homestead statutes, the financing of improvements requires a Mechanic's and Materialman's Lien Contract and Note for an amount that, at a minimum, equals the cost of the proposed improvements. The M&M contract must be signed and recorded before improvements are begun.

Homestead Property It is understood that the residential security offered may be your homestead and that the Slavonic Benevolent Order of the State of Texas (SPJST) shall not refinance any outstanding indebtedness other than the remaining balance owed on the original mortgage and any indebtedness due from a M&M Lien Note when improvements are made. When refinancing from another lender, the lender must assign the note to the SPJST at closing.

The note may not be released by the other lender due to Texas statutes regarding homestead property.

Sales transactions between parent, child, in-laws, grandparents, or spouses will not be financed due in part to the ramifications resulting from interpretations of the Texas homestead statutes.

Note: The evaluation, report done by the SPJST Directors is intended for the private use of the SPJST and should not be used by any other financial institution in determining the value of the security for this loan.

Purchase or Refinancing of Property If the funds are to be used to purchase property, the following must be provided: 1.Title conveyed from seller to buyer (borrower) by a general warranty deed reserving a vendor's lien (sales ramifications resulting from interpretations of the Texas Homestead Law).

2.Copy of the sales contract on the property to be purchased. (When refinancing, a copy of the settlement statement may be submitted for the original contract.)

3.Copy of the current year's paid tax receipt, with the current tax valuation of the property.

Present Interest Rates Residential and Farm Property 6.75% for terms of 1 to 7 years 7.25% for terms of 8 to 15 years 7.50% for terms of 16 to 20 years 7.50% for terms of 21 to 30 years Commercial Property 8.50% for terms of 1 to 10 years 8.75% for terms of 11 to 15 years The interest rate on committed loans (construction) is locked in for 150 days with one 30-day extension at the committed rate.

The interest rate on committed loans (other than construction) is locked in for 60 days with one 30-day extension at the committed rate.

Any further extension may be granted but at the current interest rate at that time, or the committed rate, whichever is greater. The rates quoted are not guaranteed. If the rates change before an application is accepted, the new rate will prevail.

A commitment that goes over a year will require a new inspection and SPJST is under no obligation to continue with the application if, our guidelines are not met.

Note: If both the loan applicant and coapplicant cease to be a member of the SPJST, the interest rate will be increased from the original rate by 2 percent.

Procedure 1.You must complete and file with the Slavonic Benevolent Order of the State of Texas (SPJST) an original and one copy of the loan application completed in ink and signed by a notary public. Include a copy of the latest paid tax receipt with the tax valuation of the property. If you are married, both spouses must sign the application.

(Continued on page 14.)

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA

14

Local Lodge Sales Representatives

LODGE

13, DIME BOX (1)

Sales Representatives (409) 884-2821 Alene W. Cottrell Mildred Horak (409) 535-7593 (409) 884-0147 Dorothy Racket

LODGE 15, BUCKHOLTS (2) Just like the Texas weather, the game of life is dictated by the rules of nature. You never really know what to expect. Bearing that in mind, the best time to purchase life insurance is when you are able-bodied and can obtain a good amount of coverage for a reasonable price. An SPJST insurance certificate can help you and your family achieve financial security under a variety of uncertain future conditions. Moreover, the purchase of life insurance, unlike some financial ventures, does not have a high element of risk involved.

Young men and women, especially, are encouraged to examine their future needs. They may find that they can secure more protection for their money today than if they wait to buy it in later years. Older members, too, will want to talk with their local sales representatives about insurance plans and financial products available to them. When you're ready to review your present coverage, give your local lodge sales representative a call.

-SPJST-

Fraternal Field Workers Meet Human Needs The fraternal field worker can look to the future with confidence.

Almost every change in the economic structure of the country has been to Fraternalism's advantage.

Past developments and future trends are bringing new opportunities for the fraternal field worker.

The record of fraternal life insurance can be viewed with pride; it has given the member 100 cents in value for every dollar invested.

Field workers can gain inspiration and power from the knowledge that fraternal life insurance, in its days of trial, stood like the Rock of Gibraltar, safe against financial storms.

Introduction to Life Underwriting Dearborn • R&R Newkirk Dearborn Financial Publishing, Inc.

Sales Representatives Jeannette E. Glaser (254) 593-3081 Michael W. Hughes (254) 697-4231

LODGE 17, NEW TABOR

(1) Sales Representatives (409) 272-3440 Susan Skrabanek Martha Trcalek (409) 272-8146 (409) 774-7519 Lola Dee Vavra

LODGE 18, ELGIN (2) Sales Representatives (512) 365-2393 Dolores Greinert (512) 281-3250 Evelyn Gustafson Margaret Taylor (512) 303-0825

LODGE 20, GRANGER (2) Sales Representative Norma Cavanaugh (512) 859-2550

LODGE 23, MORAVIA (6) Sales Representatives Elizabeth Holub (713) 688-1756 Albert E. Olsovsky (409) 562-2169 (409) 562-2779 Eddie Vrana

LODGE 24, CYCLONE (2) Sales Representatives (254) Joni Lange David Nauert, FIC (254) (254) Brian Vanicek, FIC (254) Charlie Joe Waits (254) Louise Zavodny (254) Melanie Zavodny, FIC

778-3845 760-0135 985-0007 983-3537 985-2556 983-3378

LODGE 6 COTTONWOOD (3)

Sales Representative (409) 378-2810 Rhonda Kim Kovar

Sales Representatives (254) 826-5663 Robert Dobecka (254) 826-4460 Bernard Hlavaty, Sr., FIC Johnnie Krizan (254) 826-5882 (254) 826-5882 Ruth Krizan (254) 826-5425 Jerry E. Kucera, FIC

Sales Representatives (972) 875-2789 Ernest Haskovec (972) 875-5498 Kay Lynn Kovar, FIC (972) 878-6149 Johnnie Krajca (972) 878-9982 Jeanette Patak, FIC (972) 875-7041 Martin Zapletal

LODGE 8, WEIMAR (6)

LODGE 26, SKIDMORE (7)

Sales Representatives (512) 798-3792 Mary Helen Matula (512) 573-5482 Annie Vahalik

LODGE 5

PILOT POINT - TIOGA (3)

Sales Representatives (903) 564-7359 Dean Carender (903) 564-7359 Andrew Carender, Jr. (903) 564-5063 Lanny Jaresh (940) 686-2786 Elise Koerner Sherrie Kubala Watkins, FIC (940) 686-3367

Please note that local lodge districts are noted in parentheses following lodge names.

General Information on Real Estate Loan Applications.

(Continued from page 13.)

2.If the property is in an unrecorded subdivision, you must submit a copy of the deed restrictions and other relevant details.

3.The applicable loan application fee must accompany the application in order to begin processing the loan request. An estimate of closing costs and financing charges will be furnished soon after the application is filed. A current credit report may be obtained in conjunction with the consideration of your loan request.

4.If the application is accepted for consideration, the director of your district will contact you to set up a convenient time for an evaluation of the property.

5.After the evaluation is made, you will receive a letter from the Supreme Lodge SPJST informing you of whether or not your loan application is approved. If your application has been denied, the reasons far its denial shall be stated.

6.Title insurance will be required from an accepted guaranty title company authorized to operate in the state of Texas.

7.A survey on the ground and a plat certified by a registered public surveyor is also required. The plat must

Sales Representatives (409) 743-4459 Michael Jurica (512) 579-9045 Jim Wiest, FIC (713) 342-0161 Arthur Zarosky

LODGE 9, SNOOK (1) Sales Representatives (409) 272-8873 Karen Ann Gaas (409)693-0157 Clifton J. Junek, FIC (409) 272-3265 Donnie Victorick

LODGE 10, SHINER (6) Gladys Veit

Sales Representative (512) 594-2582

show all improvements and easements and state that there are no encroachments, conflicts or protrusions. The surveyor must also attest as to whether the property is in a special flood hazard area and certify that the property has access to and from a dedicated public roadway. (In select cases, when refinancing existing SPJST mortgages, it may be possible to accept certified plats that are up to seven years old provided that your title company will delete schedule B-2 except for "Shortages in Area.")

8.If your loan application is denied, any unused portion of the fee will be refunded. No portion of the loan application fee will be refunded after a letter of commitment has been issued.

9.A termite inspection and a septic system inspection for any dwelling or commercial building, regardless of location, is required at no cost to SPJST. 10.SPJST also requires a copy of your most recently filed Federal Income Tax Return or W-2 form(s).

11.M-ore complete terms and conditions of the SPJST's underwriting guidelines may be located in the loan application and the letter of commitment. For any additional information regarding mortgage loans, call us at (800) 727-7578 or (254) 7 7 3-1 57 5 and ask for Ann Paruzinski or Daryl Entrop.

-SPJST-

Sales Representatives (409) James J. Bacak, FIC (409) Frank J. Bacak (409) Leona Macha (409) Melvin Marek (409) Karel Matejka Herman Ray Pilgrim, FIC (409) (409) Frankie Vanek, FIC (817) Kimberly Vanek

543-9362 543-5280 543-3746 543-5087 541-5759 543-3754 543-6220 572-1886

LODGE 41, PORT LAVACA (6)

Sales Representatives Jimmie J. Pustejovsky (512) 552-3280 (512) 576-3455 John Sprigg

LODGE 47, SEATON (2) Sales Representatives Alice Banning, FIC (254) Robert F. Heese (254) Wallace Jez (254) Frankie Klinkovsky, FIC (254) Willie E. Kohutek (254) Patsy Koslovsky (254) Dorothy Pechal, FIC (254) (254) Dolores Skrabanek, FIC (254) Emily Stuteville Vallie Zavodny (254)

778-3612 985-2462 983-3950 773-4801 593-4115 985-2396 985-2545 985-2344 642-3339 983-3530

LODGE 48, BEYERSVILLE (2)

Sales Representative Bobby Wuensche (512) 365-3013

LODGE 49, ROWENA (4)

LODGE 1 FAYETTEVILLE (1)

LODGE 4 HALLETTSVILLE (6)

LODGE 40 EL CAMPO-HILLJE (6)

LODGE 25, ENNIS (3)

Sales Representative (512) 358-1978 Edwin Wallek, Jr.

LODGE 28 EAST BERNARD (6) Sales Representatives (409) 335-4461 Glenn Kaminsky, FIC (281) 346-2982 Joseph D. Nezval, FtC

LODGE 29, TAYLOR (2) Sales Representatives (512) 859-2647 Edwin Adamek (512) 352-3025 Michael Kaiser (512) 365-5489 Albin Machu (512) 258-4475 Shelly Machu (512) 365-2000 Ronnie Rieger

LODGE 30, TAITON (6) Sales Representatives (409) Thomas Drapela, FIC (409) Susan Hoelscher (409) Annimae Merta (409) Anita Roye

543-1142 532-0868 543-9093 543-4884

LODGE 31, YOAKUM (7) Sales Representative (512) 353-2948 Monta Foster

LODGE 32, VICTORIA (6) Sales Representatives (512) 575-1385 Adolf Motel (512) 564-3422 Renae Jo Pierce (512) 578-2687 Matt S. Vanek, FIC

LODGE 35, ELK (3) Sales Representatives (254) Henry Breitkreutz, Sr. (254) Johnny Holub (254) Virlene Kelley (254) Eugene Kelley (254) James Mann

876-2962 754-7114 662-4758 662-4758 876-3479

LODGE 36, WEST (3) Sales Representative (254) 826-5840 Al Marchak

LODGE 38, SMITHVILLE (1) Sales Representative (512) 237-5228 Johnnie J. Janak

LODGE 39, BRYAN (1)

Sales Representative (409) 778-1450 Lillie Matejka O'Shields

Sales Representatives William Rollwitz, FIC (915) Sylvia M. Rollwitz, FIC (915) Maynard Schwertner (915) Elizabeth Walther, FIC (915)

442-3141 442-3141 442-4771 442-2001

LODGE 51, ELLINGER (1) Sales Representative George Bergfeld (409) 732-9057

LODGE 54, WEST (3) Sales Representatives Freddie Kaluza (254) 826-3534 Gregory Nors (254) 826-4517 Charles Max Reynolds (254) 826-5170

LODGE 63, SWEET HOME (6) Sales Representatives Victor Hagan (512) 293-5862 (512) 293-5479 Anton Janak (512) 293-2977 Leonard A. Jurena

LODGE 65, CROSBY (5) Sales Representative (281) 328-3004 Jerry Prochazka

LODGE 66, WACO (3) Sales Representatives (254) 840-2040 Santos Aviles (254) 694-5099 Randolph Dillard, Sr. (254) 829-2441 Milan Dujka, Jr., FIC (254) 753-2600 Darlene Engelke (254) 772-1871 Johnnie Gaidusek, Sr. (254) 932-6184 Johnnie Gaidusek, Jr. (254) 826-3474 Paul Kucera (254) 622-3620 Johnny Miller (254) 799-7489 Tim L Urbanek, FtC (254) 662-0596 Gladys Yates

LODGE 67 SCHULENBURG (1) Sales Representative (409) 561-8245 Johnnie E. Holub

LODGE 73, SEYMOUR (4) Sales Representatives (940) 888-2764 Jesse G. Hajek (940) 888-2391 Chris Orsak Raymond Pavliska (940) 888-5390 (940) 888-3340 Jerry Tomanek

LODGE 74, LOVELADY (2) Sales Representative (409) 295-6232 Jean Goldin

LODGE 76 WICHITA FALLS (4) Sales Representative (940) 322-7518 Hayden Sralla, Ill

LODGE 79 CORPUS CHRISTI (7) Sales Representatives (512)991-1746 Jerry Elzner, FIC (512) 241-1965 Glenda Elzner (512) 241-3114 Thelma Hrncir Helen Pavelka, FIC (512) 387-1384 (512) 937-4324 Jerry Sijansky (512) 729-0152 Dorothy Wiest, FIC (512) 729-0152 George J. Wiest, FIC Jim Wiest, FIC (512) 579-9045

15

1998 SPJST INSURANCE, ANNUITY AND MORTGAGE LENDING EXTRA LODGE 80, HOLLAND (2)

LODGE 107, FLORESVILLE (7)

Sales Representatives (254) 657-2279 Ricky Benner Vicki Benner (254) 657-2628 (254) 773-5840 Kevin Coats (254) 657-2488 Joe Liles (254) 657-8176 Frank Pajestka, Jr.

Sales Representatives Pauline Bayer, FIC (830) 216-7954 Robert Bayer, FIC (830) 216-7954 John H. Burleson (830) 216-4234 Maxine Pavliska (830) 393-2030 Wendy Pruski, FIC (830) 745-2702

LODGE 81, NEEDVILLE (5)

LODGE 110, KAUFMAN (3)

Sales Representatives (409) 793-6280 Adolph S. Macha (409) 548-6623 Jane E. Orchard C.H. Reininger (409) 548-6625 (409) 793-4537 Edwin E. Susan Juanita Todd (409) 793-4465 Benita Walzel, FIC (409) 793-6288

Sales Representative Mary Cluck (972) 962-6284

LODGE 117 ROBSTOWN (7) Sales Representative Kathryn Marek (512) 387-2360

LODGE 84, DALLAS (3) Sales Representatives Paul A. Athas (972) 303-0089 Ben Jarma, FIC (214) 348-1514 (972) 223-1801 Betty Lea Olson, FIC Emil Petr (214) 826-3557 Sid Pokladnik (972) 686-8604 Douglas E. Yeager (214) 827-8586

Sales Representatives Nancy Shinn Stanley Vrla (214) 826-2670 (972) 864-1534 Suzanne Vrla

LODGE 87, TEMPLE (2)

LODGE 133 SAN ANTONIO (7)

Sales Representatives Norma Alford (254) 939-7395 (254) 939-7395 Donald Alford Daryl Entrop, FIC (254) 778-2067 Keith Gatewood, FIC (409) 696-4379 Ladis Navratil (254) 773-4644 (254) 778-4709 John W. Troy L.J. Zatopek (254) 778-3067

LODGE 88, HOUSTON (5) Sales Representatives Margaret Allbritton (713) 864-2900 (281) 447-2645 Jefferey Barcak, FIC (713) 464-3808 Fred Buri, FIC Jerome J. Ermis, FIC (713) 686-8542 (713) 869-9304 Carolyn Filipp, FIC (713) 686-6160 Louis Hanus, FIC Helen Hegwood, FIC (713) 864-0489 (281) 358-7312 Vincent Hegwood, FIC (713) 861-6419 Tillie Helmcamp Mildred Holeman (713) 683-0018 Victor Janak, Sr. (713) 460-3459 Victor Janak, II (713) 461-5975 Marian Kadlecek, FIC (713) 688-5337 (713) 862-7189 Lowrina Lindemann (713) 864-0131 Lydia Marsh Joe S. Marshall (281) 353-0242 (713) 864-2163 Larry Pflughaupt, FIC Edna Wehring, FIC (713) 864-2815 Linda Wehring, FIC (713) 864-2815

LODGE 130, DALLAS (3)

Sales Representatives Frankie Campbell (210) 680-4661 Marlene Jarrett (210) 492-2522 Jarolyn Popp, FIC (830) 606-7787 Audrey Stewart (210) 366-2901

LODGE 135, ENNIS (3)

Sales Representative Mark Gerngross (254) 583-4168

LODGE 90, STAMFORD (4) Sales Represenative (940) 474-3276 Lewis McGuire

LODGE 91, CROSBY (5) Sales Representative June Ann Smesny (713) 453-2695

LODGE 92, FORT WORTH (3) Sales Representatives (903) 892-3430 Rodger Bateman (817) 281-0666 Martha M. Durham, FIC Gordon Hubenak (817) 498-3905 Kenneth Krivanek (817) 237-4320 Mary C. Krivanek (817) 237-4320 (817) 237-5314 Albert Kubala, FIC Helen Kubala (817) 237-5314 Evelyn Spacek (817) 581-9480 Christine Zich (817) 927-0283

LODGE 161 LA PARITA - JOURDANTON (7) Sales Representatives Tillie Koch (830) 569-5627 Linda Ramey, FIC (830) 393-3320

LODGE 164, RIO HONDO (7) Sales Representative Louis Krupala (956) 423-9666 Hector Saldana (210) 748-3650

LODGE 169, BRENHAM (1) Sales Representative Lillie Mikeska (409) 836-7947

LODGE 172 PASADENA (5)

LODGE 189 BRYAN-COLLEGE STATION (1) Sales Representatives Charles Munday, FIC (409) 846-2864 Amanda Vanek (409) 696-0837 Ernest Wentrcek (409) 822-6397 Larry Wentrcek (409) 846-9405

LODGE 191, LUFKIN (5) Sales Representatives John M. Anderson, FIC (409) 639-4130 Maxey Kirkley (409) 637-4787 Thomas Morgan (409) 872-3578 T. Tucker Weems (409) 639-3355

Sales Representative Zephyr Marek, FIC (512) 446-3866

LODGE 141, SEALY (1)

LODGE 175 ROSENBERG (5)

LODGE 200 BRUCEVILLE-EDDY (2)

Sales Representatives (281) 342-4898 Frank J. Parma Patricia Parma (281) 342-4898 (713) 468-2494 Julius V. Tupa

Sales Representative John Zientek (409) 865-2808

Sales Representatives Dennis Hermis (713) 466-3492 Willie L. Janik (281) 358-4586 (713) 862-5512 Robert Kieschnick Sidon Tumis (713) 681-7442

LOGE 177, ACADEMY (2) Sales Representatives (254) 773-8067 Kathy C. Fritz, FICF Linda Johnson (254) 939-1309 Janet Lyon, FIC (254) 527-4371 Barbara Wright, FIC (254) 947-9515

LODGE 143, INEZ (6) Sales Representative (512) 782-2654 Leroy Repka

LODGE 148, BLESSING (6) Sales Representatives (512) 588-6228 Olga Steffek Gay Thurmond (512) 588-7335 Benny Upham (409) 925-2659

LODGE 151, WHARTON (6) Sales Representative (409) 335-6084 Charles Bucek (281) 341-0320 Gerald Macha

LODGE 153, LA SALLE (6)

Sales Representatives James 0. Harris (903) 759-4893 Viola Kocian (903) 297-0151

LODGE 179, WARRENTON (1) Sales Representative Doris Eckermann (409) 278-3762

LODGE 180, BURLESON (3) Sales Representatives Carol Faulder (817) 295-1525 Inez Greeniees, FIC (972) 263-8811 (817) 295-3986 Marie Hampton, FIC

LODGE 181, CONROE (5)

Sales Representative Jerome J. Hlavaty, FIC (512) 874-4461

Sales Representatives Herbert Swonke (409) 894-2493

LODGE 154 FORT WORTH (3)

LODGE 182 FALLS COUNTY (2)

Sales Representatives Charles W. Garrett, FIC (512) 573-6020 Yvonne Garrett, FIC (512) 573-6020 Gay Revel, FIC (512) 573-4443 (512) 578-5979 Allan Sklar, Sr., FIC Shirley Sklar, FIC (512) 575-7515

Sales Representatives Lewis Kuykendall (915) 379-5581 (512) 392-3194 Theodore Marek

Sales Representatives Daniel Roznovsky, FIC (972) 252-6763 Michelle Roznos (817) 468-4611 Angeline Stiborek, FIC (972) 262-1841

LODGE 156, BAYTOWN (5) Sales Representatives Ben Pyle (713) 421-7306 a Donald Seal (409) 385-7354

LODGE 195, CLEBURNE (3) O.D. Otte

Sales Representative (817) 854-2629

LODGE 196 HOUSTON WEST (5)

Sales Representatives Amy Cortasie (254) 859-5102 Loree Laster (254) 859-5428 Gene McBride, FICF (254) 859-5855 (254) 859-5874 Joe R. Miracle (254) 982-4403 Sandra Unberhagen Virginia Zapata (254) 859-9839

LODGE 201, BLEIBLERVILLENELSONVILLE (1) Sales Representative Dennis Korenek (409) 478-6149

LODGE 178, LONGVIEW (3)

LODGE 155, AUSTIN (2)

Sales Representative Laura Keilers (409) 249-3769

Sales Representatives Manon G. Burleson (903) 536-2088 Beverly Dianne Howie (903) 536-2073 Cleo Streeter (903) 529-3461

LODGE 174, ROCKDALE (2)

LODGE 97, PLACEDO (6)

LODGE 106, LA GRANGE (1)

LODGE 188, CENTERVILLE (1)

Sales Representatives Lorenda Baldwin, FIC (409) 922-1279 Helen Filipp (409) 922-1418 Lonnie Lostak (409) 922-1553

Sales Representative (409) 589-2115 Lynda E. Lys

Sales Representative (405) 276-9578 Charles Sykora

Sales Representatives Ruble M. Bartz, FIC (512) 255-3415 Raymond Woytek (512) 255-3786

LODGE 139, DANBURY (5)

Sales Representatives Jeanie Mason, FIC (817) 237-7514 Talon Milan (817) 237-7129 (817) 306-9531 Julie Pritchard, FIC Mary Renfro, FIC (817) 237-1500

LODGE 101, GAINESVILLE (3)

LODGE 187, ROUND ROCK (2)

Sales Representatives Robert Hutto (281) 351-0089 Celia L Koehn, FIC (713) 522-1935 Evelyn Mikeska, FIC (713) 468-3126 Michael J. Moore (713) 465-9932 Stephen Thompson, Ill (281) 320-1225

Sales Representatives (254) 803-5596 Nick Komar Curtis Treat (254) 546-2707

LODGE 94, WHEELOCK (1)

Sales Representatives Charles Barak, Jr. (409) 823-5192 Thomas Cannon (409) 567-4264 (409) 272-3192 Olga Gloyna Lois Haile Margaret Haisler (409) 272-8657 Clint Luksa (409) 595-4859

Sales Representatives Viola Cable (512) 364-3555 Roy Hranicky (512) 991-8469

LODGE 137, TAFT (7)

LODGE 93, HOBSON (7) Sales Representatives Werner E. Ahrens (830) 780-3709 (830) 780-4467 L.F. Pustejovsky

Sales Representatives Martha Broz, FIC (915) 442-3271 (915) 442-3271 Stanley Broz, FIC Anna Rose Drgac (915) 397-2366 (915) 653-3794 Nathan Graves (915) 869-5103 Shelley R. Hyles (915) 651-8045 Leonard A. Jansa, FIC (915) 949-8335 Albert Marsh, FIC Karessa R. Marsh (915) 949-8335 Kathy Miller (915) 583-2550 Diana Pelzel, FIC (915) 651-7922 Wiley R. Shockley (915) 653-7280

LODGE 186, CALDWELL (1)

Sales Representatives J.C. Dressler (281) 575-6247 Vicki Dressler, FIC (281) 575-6247 Joe A. Krenek (713) 472-3269 Vlasta Machann (713) 472-3196 Robert Mayfield (713) 472-7287 Clarence Pert!

(281) 487-4602 Lillia Ma a Peter, FIC (281) 487-2106 Alvin J. Sefcik (409) 935-3919 Julius Zella (281) 922-4483

Sales Representatives Jerry Chudej (972) 878-7411 Larry Laznovsky (972) 878-5987

LODGE 142, HOUSTON (5)

LODGE 89, ROSEBUD (2)

LODGE 160 SAN ANGELO (4)

LODGE 183 ARLINGTON (3)

LODGE 184, MOULTON (6) Sales Representative James Filipp (512) 596-7011

LODGE 202, JOURDANTON (7) Sales Representatives Jerome Hlavaty (512) 874-4461 Patricia Tymrak (830) 769-3628

LODGE 204, STEPHENVILLE (3) Sales Representative Norman Kneschk, FIC (254) 386-3222 Tammy Moss (254) 897-2670 (254) 965-7875 Judith Riola Joyce Russell, FIC (254) 796-4969

LODGE 205, TERRELL (3) Sales Representatives Bryan Cluck (972) 962-8762 Charles Freeman (972) 524-9343 Cody Sherrard (903) 873-3761.

LODGE 206, MEXIA (3) Sales Representatives David G. Cooper (254) 729-5098 Henry Handy (254) 562-9474 Wilmer Herring (254) 562-7508

LODGE 207 CAPRIZO SPRINGS (7) Sales Representative David McDonald (830) 876-2418

LODGE 208, GRAHAM (4) Sales Representative Peter Eggert (817) 549-1478

LODGE 210, FAIRFIELD (3) Sales Representative Jack Patterson (903) 389-5936

LODGE 157, L..;E3CCX ( )

LODGE 185 NEW BRAUNFELS (7)

Sales Representatives Angeline Kristinek (806) 763-0047 Donald Williams, FIC (806) 998-4979

Sales Representatives Arvin E. Brehm (830) 609-0427 April 1. Haag (830) 629-1137

LODGE 211, ALESTINE (3) Sales Representative James McKenzie (903) 729-1710

-SPJST-

Got Five-Minutes?

Read This and Learn More About Your Options ties, help defray your children's college costs or help build retirement income. Likewise, it offers guaranteed protection and guaranteed growth at a guaranteed price.

The SPJST offers several variations on the whole life theme:

Of the two basic types of life insurance, term insurance premiums are the lowest because term insurance offers death protection only and is in effect for a limited period. For example, a member with a ten-year term certificate has protection for that ten-year period —not beyond. If the certificate is renewable, it may be extended for another period at a premium based on the new age. If not renewable, a new certificate may be purchased at the new rate, provided the certificate holder remains insurable.

SPJST typically writes term certificates for 10-year and 20year terms on a level premium basis. Prior to age 65, you can convert an SPJST term certificate to a permanent plan of insurance with a cash value.

Who typically buys term insurance?

This varies, of course; however, likely purchasers would be young couples starting new careers. When budget constraints prohibit purchasing the desired amount of cash value insurance, term insurance is often substituted. The term insurance provides them with a high amount of protection at a low premium.

Another form of term insurance offered by the Society is the "SPJST Protector Plan" which is a joint decreasing-term certificate. The plan insures both the husband and wife in one contract and is usually tailored to mortgage cancellation. The plan pays the proceeds at the time the first insured dies.

• • • • •

Traditional Whole Life 20-Payment Whole Life Lone Pay Life Plan Senior Life Universal Life The fifth menu item listed above, "Universal Life," is something of a hybrid when it comes to insurance certificates.

Basically it is an all-purpose, interestsensitive plan designed to fit the widest range of needs.

Universal Life offers a level monthly premium with a levelor an increasing-death benefit option. In addition, it offers the member an interest-sensitive cash value with a guaranteed rate of interest. The rate is currently ;7 percent. The accumulation of cash values are taxfree until distribution; likewise, death benefits are also exempt from taxation.

In addition to providing affordable insurance coverage to its members, the SPJST also offers a quality member benefit geared toward minimal risk with optimum gain — the SPJST Annuity.

The purpose of an SPJST annuity is to assure a person of an income which cannot be outlived. An SPJST annuity can also be qualified as an I.R.A. Selecting the right insurance plan for you and your family is an important decision and one that should never be entered into blindly. That's where an SPJST sales representative can help.

As its name suggests, whole life insurance furnishes protection for the "whole life" of the purchaser, regardless of the premiumpaying period. Whole life insurance is often purchased not only as premature death protection but also as a vehicle for accumulating funds for emergencies and for retirement.

An SPJST whole life certificate also has a "cash value" that can be used to take advantage of business or investment opportuni•E4 SPJST Hore Office • 520 North Main Street • Temple, 73xa-s 755 , 1 0 b3 727-77, 1 • (254 773-1575

Life Insurance . . .

.

1998 SPJST Insurance, Annuity, and Mortgage Lending Extra

and more!

he SPJST provides money for your family if you die too soon.

Annuities, mortgage loans, mortgage protection and insurance for business purposes are also available to qualified members. hat's more, the SPJST and its statewide network of local lodges sponsor a wide range of family-oriented activities and community service projects, including musical and dance groups, picnics, contests, summer camps and youth activities. or more information, contact one of the sales representatives listed herein, or call the SPJST Home Office in Temple at 1 (800) 727-7578.

Exploring Your Options