The Rural Voice, 1990-06, Page 14CASH FOR COINS!
WANTED
Canadian Silver Dollars dated 1935
to 1949, old Canadian paper money
and bank notes. Also purchasing old
Dutch coins and paper money
Peter Damsma
P.O. Box 655, Clinton
Bus. 482-5991
Res- 482-9849
READY TO LAY
PULLETS
BABY CHICKS
WHITE & BROWN EGG LAYERS
FISHER POULTRY FARM INC.
AYTON ONT. NOG 1C0
519-665-7711
Would you
like to discuss
Life Insurance?
PROFESSIONAL INSURANCE
REPRESENTATIVES
WATKINS, DAUGHERTY
& ASSOCIATES
LICENSED INTERMEDIARIES
FOR
sus
IMPERIAL UFE
Estate Planning, Business
Insurance, Group Benefits,
RRSPs, RRIFs, Annuities,
Disability Insurance,
Retirement Planning,
Equity Funds
The Imperial Life Assurance Company
of Canada
305 King Street West, Suite 609
Kitchener, Ontario N2G 1B9
LUCKNOW:
LISTOWEL:
KITCHENER:
528-3514
291-5040
744-5281
10 THE RURAL VOICE
WISE MOVES
Financial Strategies for Farmers 1
Bob Watkins
"Wise Moves" is a series of articles provided by
Watkins, Daugherty & Associates. Taking as a
case study the farm of "Martin Wise," financial
experts Richard Daugherty and Bob Watkins
outline various ways that farmers can enhance
their financial planning and security.
Your questions and comments are wel-
come: telephone Bob in Lucknow 528-3514,
Richard in Listowel 291-5040, or Kitchener
(Imperial Life regional office) 744-5281.0
LIFE INSURANCE ON CHILDREN
Several people we know have life
insurance policies on their children.
Mary and I have often wondered why
anyone would do that. Surely they
don't want to profit from their chil-
dren's death. When our insurance
representative stopped by recently,
we asked him about it.
He explained that insurance on
children can serve three main pur-
poses. The first is simply to provide
money for a funeral when no other
funds are available. The second is to
enable parents to sell their home and
buy a new one in a new area, away
from the painful memories. However,
the third and most common reason is
to provide the child with a valuable
gift which will last him all his life.
The cheapest way to insure a
child is to add a term rider to an
adult's policy. In our case, we found
we could insure our children, Bradley
and Cynthia, until they are 25 for $6
per $1,000 of insurance per year. All
the children in a family can be insured
for this one price. When the children
turn 25, they can convert their term
rider to a permanent plan for up to 5
times the amount they were insured
for before.
However, we were told that this
type of term rider would not really
benefit the children in the future so
much as owning their own personal
plan from the start. Our representative
showed us examples of childrens' pol-
Richard Daugherty
icies. One for Bradley, for instance,
would require a deposit for 30 years,
after which it would carry itself. At
age 30 he would have a paid-up pol-
icy. The coverage would start to go
up after the first year and continue to
increase for life. At age 65, it could
be over 5500,000, which means this
same policy would help provide
protection for Bradley's own family.
It would also provide a yearly income
for Bradley later in life which in-
creases each year until his death.
Bradley and Cynthia's grandpar-
ents (Mary's parents) have been talk-
ing about making a cash gift to the
children for some time now. We
asked our representative whether they
could buy this type of plan for them.
He explained that this could be
done, and that if a single payment was
made for a plan into a special account
which earns interest, then the total cost
of a plan like this would be reduced by
about 50 per cent.
This seemed like a good idea to us
and we decided to have our represen-
tative meet with Mary's parents to set
up a plan for both children. The chil-
dren will have their policies given to
them whey they are over 18 and the
money in the plans will become theirs.
By the way, we found out that this
plan is one of the few remaining ways
that a grandparent or parent can trans-
fer money to a child without having to
pay income tax on its future growth.°