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Saturday MarcbSIM Paget Business Outlook Make informed choices when insuring your life Life insurance is a fundamental part of your financial plan It Canadians protect them selves against the loss of income due to death disability or retire ment What are the main types of life uttoraooe and what arc the differences between hem There arc two main categories of life insurance policies whole life in a variety of forms and term Whole life which is also known as straight life permanent life or ordinary provides protection for as long as you live You pay the same premium throughout your lifetime with part of the payment accumulating as cash value and dividends It is this cash component that can be used as the basis for a low interest rate policy loan or removed From the policy other in a lump sum or over a specified period of tune Term insurance as its name implies covers you for a specified period of time usually one to years or to age When the term ends so does the policy and its protection Most term policies are renew able usually without health checkups However each time you renew the policy the pre mium rises significantly to reflect your advancing age and the in creased likelihood of death The majority of term insurance policies do not provide cash values or the other options found in whole life insurance During recent years a popular variation of whole life has been universal life which combines an investment return on cash values wilh a built in flexibility in the amount of life insurance pro tection Universal life consists partly of term insurance and part ly investment You designate how much insurance protection you want and how much you want in vested in low risk financial in struments Policy owners must keep in mjnd that the cost of the term insurance component in creases as you grow older Also the insurance coverage continues only as long as there is enough money in the fund to pay premiums as they come due Have the benefits offered by whole life Insurance been out dated by the initial km coats of term insurance and the Investment of life Unlike term insurance which pays only if you die within a specified of time whole life pays whenever your life It is permanent life in Whole life is also very flexible providing numerous options in the way you pay premiums how you use the protection and haw benefits are received The follow are a few examples You can borrow money from your life insurance company up to the cash value of your policy You can stop paying premiums and continue the protection for a specified period of time rather than for the rest of your life You can your pro tection entirely and have your company convert the accumulated cash value into an income for you You can caned the policy entire ly and receive a cash payment the cash surrender value and dividends if any There is no right or wrong policy for everyone Your selection or life insurance should be based on your family protecuon needs It is an integral part of your long term financial plan How much life Insurance do you need To determine the amount of life insurance that is right for you consider the income your depend will need for living expenses educational needs and other future expenses taking inflation into account In this total should be included cash requirements for the expenses of final illness taxes mortgages or other debts Generally speaking financial say that you should have life insurance coverage equivalent to five times your annual income Another valid approach is to in sure yourself to an amount culated by projecting your present earnings at a modest increase of per year until the normal retirement age or There is no handy formula or slide rule to show how much life insurance an individual should have The right amount is a highly personal matter which should be determined through talking to your spouse and your life insurance agent or Chartered Life Underwriter For further information con tact Underwriters Associa tion of Canada 41 Don Mills Ontario M3B or speak to your local life underwriters association SAME DAY TAX RETURNS Si 8772217 N ELLS DRIVING SCHOOL Approved by Ontario Safrntf 4 DAY CRASH COURSE March to 18th 930 to 330 Information About Courses or Private Lessons phone 8772671 Start 1989 savings now ITS YOUR MONEY Paul J Rockel Jtm John and Jerry our mythical have been saving per year into their RSP s for the past yean They arc now about rein and looking forward the day with glee They each prided themselves as they should on having the foresight to have saved S3 per year into Ihcir RSP True each of Ihern had fared over per year in taxes 1800 per year so the TRUE COST was only SI per year S133 33 per month Just imagine said Jim we now have the look after our house do the thing we always wanted with our lime and travel and seethe world And replied Jerry we now have income all those things again lake 3 500 per month from my Regis Retirement Income Fund BR IF and expect have the dollars grow besides That in my slue looks great 350 shoul both Jim and John We don have that amount in our And so they discussed how they had saved ihcir SI per year It was covered JIM had saved tin per year in a savings institution where he had aver aged 10 over the 20year period JOHN had put per year into a mutual Tuna that had averaged 15 per JERRY had put per month 400 per year into the same mutual fund as John had used averaging 15 per yen JOHN was worth mutual fund JERRY was worth same mutual fund All had invested exactly same amount 48 000 over the year But had different dollar able now for their retirement Jim had saved his per year and his important objective each year was to reduce his taxes no thought to what his were growing at and so left It at the savings institution figuring a 10 average pretty good it it while inter in the tax savings also looked for ways to achieve a better rate of return and found that most good mutual funds have averages of and better per year if you look at year results and longer But both of them used same mutual fund and invested same amount of monies each year Why does Jerry have over more than The answer is obvious They both earned he same John put in per year each whereat Jerry contributed PER MONTH using a pre authorized cheque plan whereby it automatiially was invested for him each month Let use our calculator for a bit 2 400 per year X 10 Jim yearsSl3l JOHN 2 per year X JERRY per momhs303 190 Even the calculator tells us that Jerry monthly fund saver has double the amount of Jim institutional saver and that he has 20 more than John who saved same mutual fund The reason iluu Jerry saved MONTHLY But by using equity funds up with even more gain because some thing called dollarcost averaging was working for him By investing regularly during both the and downs of the equity funds he was sometimes buying bargains which gave him an average better rate of return than 15 despite the fact ihe fund averaged Would you like more in Maybe you should consider investing monthly so many of us do Start next year monthly NOW PAUL J author book Why I InvMl in Mutual Fund and prashjant Capital Plan ners LTD For Information as lor RSP bro chures and writ Paul J Recital 153 Union SL E Waterloo Ontario N2J1C4 EARLY BIRD SPRING TUNEUP SPECIAL cylinder 6 cylinder cylinder Includes Parts labour Most Cars Fuel Injected Cars Extra The early bird catches a great deal Let our team of highly skilled GM trained technicians get your car in shape You II feel the difference a good professional tune up makes So hurry to take ntage of this special Complete tune up includes Thermo controlled air cleaner check Engine idle speed adjustment Carburetor mounting torque check Vacuum advance system and hoses check Fuel filter replacement Spark plug wires check Idle stop solenoid andor dashpot check Spark plug replacement Engine timing adjustment and distributor check Air filter replacement PCV valve checked Evaporation control system check and Filter Replacement Check 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