THE UKRAINIAN NATIONAL ASSOCIATION FORUM (03/16/03)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

INSURANCE MATTERS

Put UNA annuities to work for you

by Christine E. Kozak
UNA National Secretary

Are you setting aside enough money for your retirement? Are you satisfied with the interest you are earning towards your retirement? If the answer to both questions is "no," then please read on. If your answer is "yes," then the Ukrainian National Association's annuities may still be for you. Recognizing the need to stay current with the marketplace, and wanting to help UNA members attain their retirement goals, the UNA added the annuity product to its portfolio in 1995. The annuity product gives UNA members an additional vehicle in realizing their retirement income.

Annuities are bought for future retirement income and are not to be mistaken for savings plans. An annuity is not an insurance policy, but is a contract made between the insurance company, in this instance UNA, and the member. A life insurance policy pays the benefit amount to the beneficiary after the death of the insured; conversely, the annuity pays income to the contract holder during the lifetime of the annuitant.

The annuity contract specifies that in return for premium payments made by the member, the UNA will guarantee interest to the annuity and will also guarantee income options. The premium payments made to the annuity earn interest, and accumulate. The earnings grow and compound tax-free until withdrawn, thereby qualifying the UNA annuities as deferred. The deferred annuity accumulates more money over a shorter period of time, and ultimately this accumulation will give you greater income.

Today, many people are using the tax-deferred annuity as a foundation for their overall financial plan instead of savings accounts or certificates of deposit. The difference between a certificate of deposit and a tax-deferred annuity is the postponement of paying taxes on the earned interest until withdrawal - and the accumulation of earnings on funds that would have otherwise been paid to the IRS. An annuity is subjected by the IRS to the "ordinary income tax." The "earnings" portion of the annuity will be taxed at the time of withdrawal. The IRS may also charge a 10 percent tax on any withdrawal of interest of qualified premium made prior to age 59 1/2.

Like certificates of deposits, annuities have a penalty for early withdrawal. However, as a fraternal benefit, the UNA offers a "10 percent free withdrawal" provision in the contract - which means that you can withdraw 10 percent of your annuity without any kind of surrender charges.

Since April 15 is not far away, it should be noted that a contribution to an IRA annuity up to $3,000 or $3,500, depending on the age of the taxpayer and other requirements, may be deductible from your taxable income. And that could translate into substantial tax savings. For example, a 67-year-old taxpayer living in New York City and having a gross income of $33,525 for the year 2002, by contributing $3,500 to an IRA annuity account would save $1,088 in federal, state and city taxes. The taxes due would decrease by $1,088. If the taxpayer was to get a refund before contributing into the IRA, then the refund would increase by the same amount.

Your tax-deferred annuity is safe with the UNA. By law, the UNA is required to keep reserves at all times equal to the withdrawal value of your annuity policy. The withdrawal value is your principal plus interest, minus any withdrawal fees if applicable. In addition to reserves, state law also requires that certain levels of capital and surplus be kept to further protect the money paid in by all policyholders.

For more information regarding UNA annuity products, please call the UNA Home Office at 800-253-9892.

Since tax laws are always subject to change, please consult your accountant or other qualified tax advisor regarding annuity taxation.

UNA Seniors announce 29th conference at Soyuzivka

by Anna Chopek

LOS ALAMOS, N.M. - The 29th annual conference of UNA Seniors will take place at Soyuzivka on June 8-13.

We urge you to attend. It will bring back all the memories of the good times you and your family had over the years at Soyuzivka. Your attendance is very important this year. Soyuzivka needs to have all its facilities used if it is to continue its existence.

Since this is a well-attended event, we urge you to send in your request for a room reservation early. Call (845) 626-5641 or write to: Ukrainian National Estate, P.O. Box 529, Kerhonkson, NY 12446. Fees: UNA member,s $69.30 per day; non-UNA members, $75.60 per day. Includes all meals and banquet. (Just $4 per day more than last year.)

We assure you that you will appreciate the program which includes: a liturgy and panachyda for deceased UNA members, an auction of Ukrainian artifacts, a bingo night, a welcoming wine and canapé party, a Ukrainian sing-along, a game night (poker, bridge), etc. There is also discussion on current events in Ukraine, talks on matters of interest to seniors, Ukrainian videos, an "Odesa Night" dinner, a cocktail party and banquet with speaker, a dance, plus some free time for those who would like to have an afternoon of golf or shopping.

Last year, we had a very lively discussion with the incoming president of the Ukrainian National Association, Stefan Kaczaraj, over the problems he was facing with the UNA and Soyuzivka. We expect that this year we will again have an opportunity to meet with President Kaczaraj to discuss the present status of Soyuzivka and the UNA.

Make your reservation!

Anna Chopek is president of the UNA Seniors.

A tale of two Ukrainians

by Joseph Hawryluk

Pavlo, a non-smoker, died unexpectedly on his 58th birthday. Four years earlier he had purchased a $25,000 term life insurance policy (T5) from the UNA. It cost just $137.75 per year. His wife had enough money to pay the priest for a nice church service, an impressive funeral breakfast and toasts at a local restaurant for all their friends, a shiny casket and a gorgeous plot at the cemetery. There was even enough money left over to pay off their new car loan. At the funeral breakfast, everyone remembered Pavlo fondly.

Dmytro was always putting off buying life insurance. Other people die, he would say. My time hasn't come yet. He finally died at age 83 from injuries suffered when he fell off his ladder, while working on the garage roof. His wife received a $255 death benefit from Social Security. When she found out how much a funeral, casket, plot, etc., would cost, she gave some of the Social Security death benefit to the priest for prayers, and donated Dmytro's body to the university medical school.

Even if you think you're never going to die, the UNA can still help you live better today with its annuities (including Roth IRA, Spousal IRA and traditional IRA). With the stock market in its doldrums (and appearing to be going lower every day), where else can you get up to 6 percent for the first year guaranteed on a 10-year annuity where your principal is always safe?

Sure I'm in the stock market. But, I also balance out my portfolio with annuities from a 109-year-old company, the Ukrainian National Association Inc. This company is rated higher in solvency than Aetna, John Hancock, Metropolitan, New York Life, Prudential and other well-known names by Standard Analytic Service Inc. of St. Louis.

For tax year 2002, you have only until April 15, 2003, to contribute up to $3,000 ($3,500 if you are over age 50) to your traditional or Roth IRA. For tax year 2003 we have until April 15, 2004, with the same $3,000/$3,500 limits. For non-qualified annuities, there are no time constraints.

My advice: start earning more today. Give the UNA a call at 1-800-253-9862, or log on to www.unamember.com.

Joseph Hawryluk is a licensed life insurance agent. He is also a UNA advisor and chairman of the Buffalo District Committee.

In Memoriam

Mychajlo Spontak
May 19, 1921 - February 14, 2003

The Executive Committee of the Ukrainian National Association regrets to announce to the members of the General Assembly, and members of Branch 204 and to the UNA membership at large that Mychajlo Spontak, longtime secretary of Branch 204, died on February 14, 2003.

The Executive Committee and the entire UNA membership wish to express their sincerest sympathy to his wife, Vera; son Pawlo; and daughter Christine. Mr. Spontak is buried at Holy Spirit Cemetery in Hamptonburgh, NY. Mr. Spontak will be remembered for his long years of service and dedication to the UNA.

Vichna Yomu Pamiat

In Memoriam

Michael Turko
September 18, 1920 - February 28, 2003

The Executive Committee of the Ukrainian National Association regrets to announce to the members of the General Assembly, members of Branch 63 and to the UNA membership at large that Michael Turko, longtime secretary of Branch 63, died on February 28, 2003.

The Executive Committee and the entire UNA membership wish to express their sincerest sympathy to his son, Michael S.; daughter Cammie Marcinek; and their families. Funeral services were held March 3 at St. Mary's Ukrainian Church in Ford City with burial at Holy Trinity Cemetery in Ford City, Pa. Mr. Turko will be remembered for his long years of service and dedication to the UNA.

Vichna Yomu Pamiat

| Home Page |