The Rural Voice, 1990-03, Page 18Would you
like to discuss
Life Insurance?
PROFESSIONAL INSURANCE
REPRESENTATIVES
WATKINS, DAUGHERTY
& ASSOCIATES
LICENSED INTERMEDIARIES
FOR
sus
IMPERIAL LIFE
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 1 B9
LUCKNOW:
LISTOWEL:
KITCHENER:
528-3514
291-5040
744-5281
INCOME TAX
AND
FARM MANAGEMENT
SERVICE
Income Tax
• farm, business, or personal
• complete year round service
including tax audit
representation
Farm Management
• arranging leases to qualify
for tax rebates
• Farm Start and other forms
prepared
• farm debt review assistance
Over 10 years experience
Quality work
at reasonable rates
"FREE CONSULTATION"
Stephen Thompson
Box 387, Blyth
523-4916
14 THE RURAL VOICE
WISEMOVES
Financial Strategies for Farmers
Bob Watkins
"Wise Moves" is a series of articles pro-
vided by Watkins, Daugherty & Associ-
ates. Taking as a case study the farm of
"Martin Wise," financial experts Richard
Daugherty and Bob Watkins outline vari-
ous 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
I suppose Mary and I are no
different from most people: we don't
like to talk about life insurance. The
truth is, when our insurance represen-
tative first called us we were hesitant
to see him because we thought he
wanted to talk us into buying another
policy. We had no idea that he could
help us in so many areas and teach us
about financial planning. Mary asked
me what type of life insurance cover-
age we had, and I really didn't know.
So we agreed that a review of our
policies was a good idea.
After glancing over the policies,
our representative asked why we had
bought our insurance, how much we
knew about our policies, and what we
knew about insurance in general. I
said the insurance was to pay for bur-
ial costs and that I knew little about
insurance. He assured us that this was
the response most people gave him.
There are only two types of cover-
age, he told us: term and permanent.
Term insurance runs for a fixed period
and, if you die during that term, your
beneficiary gets the money. If you
live to the end of the term, you usually
have the option of renewing without
having to qualify medically. Because
your risk of dying increases as you get
older, the cost of term insurance goes
up at the start of each new term. Term
insurance usually expires when the
Richard Daugherty
holder is 70, but can be converted to
permanent insurance before age 65.
Permanent insurance is in force for
all of one's life and has a guaranteed
fixed price. In the early years, this
price is higher than the price of term
insurance. But as you get older,
because the price is fixed, permanent
insurance becomes substantially less
expensive than term.
However, as our representative
pointed out, when an income earner
dies, the survivors really don't care
what type of life insurance he had, as
long as he had enough. How much is
enough? Enough to pay all debts and
mortgages and to replace the annual
income lost when the wage earner
dies. The single most important con-
sideration is to make sure that you
have enough. If you have to buy term
insurance to suit your budget, do so.
Our representative showed us a
way to determine how much coverage
Mary and I should have. He also
showed us where we could use term
insurance to cover our short-term
needs and a way we could use our
permanent insurance to supplement
our retirement income.
By the way, did you know that
you can use life insurance to make
charitable donations? This will
significantly increase your gift. You
can also tax -deduct the premiums.0