Knights Of Columbus: Insurance And Loan Services

The Knights of Columbus is a fraternal benefit society that provides financial security and insurance to its members and their families. It offers a range of insurance products, including permanent life insurance, single premium whole life insurance, and survivorship universal life insurance. While the Knights of Columbus does not provide loans directly to its members, it offers insurance policies that can be used as collateral for loans. Additionally, the organization has a history of making loans to Catholic institutions such as churches, parishes, dioceses, and schools through its ChurchLoan program. The Knights of Columbus Asset Advisors, owned by the order, is a money management firm that offers investment strategies, including a bank loan strategy.

Knights of Columbus insurance fraud allegations

The Knights of Columbus is a fraternal benefit society that provides financial security to its members and their families. It offers permanent life insurance products with flexible policy options. However, the Knights of Columbus has been embroiled in several legal disputes and allegations of insurance fraud.

In 2017, a small Boulder-based digital platform company, UKnight, filed a $100 million lawsuit against the Knights of Columbus, accusing them of violating federal racketeering laws and engaging in a scheme of "racketeering, fraud, deception, theft, and broken promises." The lawsuit alleged that the Knights of Columbus was using "phantom" numbers to inflate its insurance pool, claiming nearly 2 million members while the actual number was closer to 1.4 million. The lawsuit also claimed that the Knights of Columbus was only one step removed from a classic Ponzi scheme and that it generated billions of dollars tax-free through its life insurance business.

The Knights of Columbus vehemently denied these allegations, calling them "baseless and unfounded." They defended their reputation and stated that they would vigorously defend themselves in court.

In 2019, the Knights of Columbus was ordered by a jury to pay $500,000 to a small Colorado tech company, List Interactive, after finding that they had breached their contract. The jury rejected the fraud allegations, but the trial included testimony that the Knights drastically overstated their membership to protect their lucrative insurance business. The Knights disputed these allegations and denied any wrongdoing.

The allegations of insurance fraud against the Knights of Columbus include inflating membership numbers to appear more profitable and appealing to prospective policyholders. This is a common tactic in fraud cases, as young members who pay into the life insurance pool for an extended period are crucial for the financial stability of insurance companies. The Knights of Columbus has faced legal disputes and allegations of dishonest business dealings, with ongoing analyses of their membership data.

Knights of Columbus loans to churches, schools, and Catholic institutions

The Knights of Columbus is a fraternal benefit society that provides financial security to members and their families. It offers a range of insurance products, including permanent life insurance, single premium whole life insurance, and survivorship universal life insurance. In addition to insurance, the Knights of Columbus also provides certain financial services to the Catholic market, including loans to churches, schools, and other Catholic institutions.

The organization has a long history of providing loans to support Catholic institutions, dating back to the late 1890s when they made their first loan to St. Rose Church in Meriden, Connecticut. Since then, the Knights of Columbus have loaned money to parishes, dioceses, and other Catholic entities. By 1954, the organization had loaned over $300 million through its ChurchLoan program, and as of 2008, that number had grown to over $500 million. During the COVID-19 pandemic, the Knights of Columbus established a $100 million fund to provide short-term loans to dioceses, with each diocese eligible for a $1 million secured line of credit.

The Knights of Columbus is also active in other areas of financial services and investing. They own Knights of Columbus Asset Advisors, a money management firm that invests in accordance with Catholic social teachings. As of early 2023, the firm had $25.8 billion in assets under management. The organization also has a history of investing in real estate, dating back to the post–World War II era when Supreme Knight Hart moved the order into a more aggressive program of investing in property.

In addition to their financial services, the Knights of Columbus is also dedicated to supporting Catholic education, local parishes, dioceses, and global Catholic social causes. They provide a range of insurance and financial products to their members, including retirement savings plans and long-term care insurance. The organization also offers complimentary financial planning services to members and their spouses, helping them to achieve their financial goals and protect their families.

Knights of Columbus life insurance policies

The Knights of Columbus is a fraternal benefit society that provides financial security to members and their families through insurance and financial services. They offer both permanent and term life insurance policies.

Permanent Life Insurance

The Knights of Columbus offers permanent life insurance policies that accrue cash value over time. These policies are designed to be flexible and can be adjusted to fit your unique needs. You can choose how many years you would like to pay premiums, with a five-year minimum payment period. The cash value of your policy can be used through a partial loan or a full surrender of the policy, or as collateral. Permanent life insurance policies also offer the option of additional paid-up insurance, which increases the policy's death benefit and cash value.

Term Life Insurance

The Knights of Columbus also offers term life insurance, which is designed to provide maximum coverage at affordable rates. Term insurance is temporary and designed to expire as your financial obligations expire. It is also convertible, allowing you to convert some or all of your insurance to permanent coverage at a later date without providing further proof of insurability.

Survivorship Universal Life Insurance

The Knights of Columbus offers Survivorship Universal Life Insurance, which covers two lives and has flexible premium payments. This type of policy is often used by couples for estate planning, estate conservation, or estate equalization. It includes a Lapse Protection Rider, which ensures that the policy remains in force as long as premiums are paid.

Single Premium Whole Life Insurance

The Knights of Columbus also offers Single Premium Whole Life Insurance, which may be considered a Modified Endowment Contract (MEC). Any distributions from this contract, such as loans or dividends, will be subject to current income tax if there is a taxable gain.

It is important to note that all life insurance policies offered by the Knights of Columbus have exclusions and limitations. Policy issuance is subject to underwriting, and a medical exam may be required. Premiums may vary and can be increased in the future. Any policy loans will impact the guarantees by reducing the policy's death benefit and cash values.

Knights of Columbus disability insurance plans

The Knights of Columbus is a fraternal benefit society that provides financial security to members and their families through insurance and financial services. It is the largest Catholic fraternal organization in the world and one of North America's largest life insurers, with over 2 million members and more than $100 billion of life insurance in force.

The Knights of Columbus offers disability income insurance policies that help protect individuals' income in the event of a long-term disability. These policies come with several features and benefits:

• Total, partial, or presumptive disability income benefits: These benefits help protect against special circumstances and ensure a continued income during the period of disability.
• Waiver of premium provision: This provision waives the policy's premiums while the policyholder is suffering from a disability.
• Benefit period options: Policyholders can choose from different benefit period options, including 2-year, 5-year, or until the age of 67, to protect their income during their working years.
• Monthly benefit amount: Working with a Knights of Columbus field agent, individuals can establish a monthly benefit amount based on their income and within certain limits.
• Elimination period: There is a choice of a 30, 90, or 180-day elimination period, after which benefits will begin to be paid.
• Riders: Additional benefits, known as riders, are available to enhance the policy. For example, the catastrophic disability rider provides an extra monthly benefit in case of a catastrophic disability, and the cost of living adjustment rider helps the monthly benefit keep up with inflation.

In addition to disability income insurance, the Knights of Columbus offers a range of other insurance products, including permanent life insurance, term life insurance, retirement annuities, long-term care insurance, and fraternal benefits. The organization is highly rated for its financial strength and has been recognized for its ethical practices.

Knights of Columbus financial services for individuals and institutions

The Knights of Columbus is a fraternal benefit society that provides financial security to members and their families through insurance and financial services. It offers a range of financial products and services to individuals and institutions, including insurance solutions, investment opportunities, and charitable giving options.

Insurance Solutions

The Knights of Columbus offers a variety of insurance products to eligible members in the US and Canada. These include permanent life insurance policies, such as the Single Premium Whole Life Insurance and Survivorship Universal Life Insurance. These policies provide financial protection for families, with features like adjustable coverage, partial loans, and collateral options. The Knights of Columbus also offers retirement savings plans, long-term care insurance, and dynamic signature products that provide money to beneficiaries while building cash value during the policyholder's lifetime.

Investment Opportunities

The Knights of Columbus Asset Advisors (KoCAA) provides investment advisory services to individuals and Catholic institutions. With an investment portfolio of over $29 billion, KoCAA offers investment opportunities that align with Catholic values and the investment guidelines set by the United States Conference of Catholic Bishops (USCCB). This includes Exchange-Traded Funds (ETFs) that are affordable, accessible, and tax-efficient, allowing investors to maximize their charitable giving while diversifying their portfolios.

Charitable Giving

The Knights of Columbus encourages charitable giving through donor-advised funds. These funds ensure that individuals' donations reach charities and causes aligned with their faith. By partnering with the Knights of Columbus, individuals can maximize their philanthropic impact while adhering to Catholic social teachings.

Financial Education and Support

The Knights of Columbus also provides financial education and support to its members. It offers resources and guidance to help individuals make informed decisions about their financial goals, investments, and insurance choices.

Overall, the Knights of Columbus is committed to helping individuals and institutions pursue their financial goals while staying true to their values and contributing to charitable initiatives. Their range of financial services and insurance solutions cater to the unique needs of their members and the wider Catholic community.

Frequently asked questions