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The Rural Voice, 2006-07, Page 26Brough & Whicher Limited Wiarton, Ontario • Quality Engineered Roof Trusses to 60' span • Residential. Commercial and Farm • Engineered "I" Joist Floors & Beams • Cedar Log Homes & Lumber Phone (519) 5340340 Fax 534-4637 browhich@bellnet.ca Tractors KJ 20-65 hp pp tri" Lawn & IGarden Equipment BOYD FARM SUPPLY 519-376-5880 • 1-800-475-2693 Fax: 519-376-4757 www.boydfarmsupply.com LIFE INSURANCE POLICIES: SOME YOU SHOULD AVOID Life insurance is a commission based product. All too often the policy suggested to the client is based on how much commission the selling agent will make. Cash value or "whole life" policies may be suggested as the premium is much higher, therefore pay a higher commission. Term insurance might be discouraged as it pays a lower commission and the premium is much less. If a term policy were purchased and the savings in premium invested far removed from the insurance policy, the beneficiary would receive both. With the "cash value" policy, the insurance company pays only the death benefit and keeps the savings portion. In reality the client has paid a higher premium, and put money into a savings to pay a portion of their own death benefit. This policy should be avoided. Universal Life (UL) is another policy paying the agent a higher commission than term, and is all too often recommended. It makes no sense for a client who does not fully use their RRSP contribution to consider a UL insurance policy. I will share a convers?tion I had with an agent in Toronto. I asked him what type of insurance he sold, he replied "I sell only UL". My question to him was "if the client did not purchase a full RRSP contribution, why would he purchase a UL insurance policy?" "Yes, you're right" he said "but I don't tell the client that". For most, this is a policy that should also be avoided. The main purpose of life insurance is to replace the income of a loved one in case of premature death. Enough coverage should be purchased to cover the mortgage, living expenses and education funds. Term insurance is the most affordable policy. Both mortgage and family protection should be in one policy. When shopping for prices always use a broker, someone who can price and sell for many companies. I always give my client a price quote from the top twenty-five companies. If you have any questions or would like a no obligation price quote, call me at 519-395-5182 e-mail: terminsurance@hotmail.com HUGH MASON INSURANCE R.R. 1, Kincardine 22 THE RURAL VOICE the evolving needs of the growing operation. Reid says his greatest contribution to the long-term story of Mornington Heritage Cheese and Dairy Co- operative Inc. may be his insistence that no more than half the membership of the board of directors be made up of farmers. Farmers tend to think in a similar way, he says. "When we (farm board members) get together there's all this stuff mixed in (like friendship and loyalty) that sometimes clouds our judgement. We don't want to hurt feelings. There's none of that when people are together on a board like John Deere." With their prime focus on milk production, there were so many things farmer board members had to learn about what goes on beyond the farm, gate. There's a cost, for instance, in aging cheddar, with money tied up in inventory until the cheese is aged enough for sale. So there's a benefit to having board members with experience in other fields. Those board members at John Deere don't all drive John Deere tractors, Reid points out. They are chosen because of their skills in building and managing quite unrelated businesses. The board at Mornington include three non -farmers. "They bring a broader perspective," says Reid. "Nearly all have operated their own businesses successfully." But they are committed to making the co-op a success. "They like the idea of community involvement," Reid says. Those non -farmer board members have shown tremendous support, in some cases investing heavily. Two of them bought equipment from an Alberta plant and moved it to Millbank. "They've allowed us to do things we couldn't have done (otherwise)," says Reid. The widespread community support extends to friendly, sympathetic and patient tradespeople who helped install the equipment in the plant, some of whom are still waiting to be paid. Still, "You've got to start showing positive cashflow," he says. "So much work has been done by people who worked for nothing, but you burn them out."