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THE HERALD OUTLOOK Saturday March 18 IMf Page 11 Outlook op Business Should you or shouldnt you ITS YOUR MONEY Paul J Rocket A great deal Is made today about the privileges you have in borrow against the cash surrender values that may have built up in your whole life policies While we believe a person should buy Term Insurance rather than whole life with cash value build that are forfeited at death in win lose DREW most policies there are many many people who have been sold whole life policies and if they question as to whether they should replace those expensive policies with newer Term policies are often told they have a fantastic ad vantage with their old policies namely that they can borrow against them at rates as low as six percent per year We found an interesting response to that idea in a monthly advisory letter It was answering an enquiry from a reader who was asking if It was wise to hold on to a whole life policy because of its economical borrowing power The answer in part reads You questioned regarding keeping your insurance policy so you can borrow at inexpensive loan rates I It is true that if you have an old enough policy it probably qualifies you to borrow from that policy at a six per cent rate fan tastic NOT SO The only person who should take advantage of that is a person who presently does NOT qualify to buy new insurance For anyone else it is wise to pur chase new insurance now so that he can borrow the cash value from his old policy at zero interest by simply cashing the old policy As an example a Whole Life Policy purchased many years ago at a persons age 25 premium annually would have pro bable cash value of at age KLASSIC KNITTING OFF KNITTING MACHINES brother 8531686 90 Klngham ACTON Contact the Advertising Dept at 8772201 A opportunity to tell your companys story Once a year this edition provides Halton hills residents with a comprehensive story of what progress our community has made over the past 1 2 months It does this in both words and pictures Make sure your business is represented by contacting your local representative or display advertising at 8772201 the HERALD Home Newspaper of Halton Hills Established combined with dividends in the range of His death benefits Is Still If the insured wishes he may cash his dividends of 3325 at no interest charge He may also bor row the approximate from the policy If he borrows the he effectively REDUCED the death benefit to 19000 because his beneficiary would receive the LESS the 6000 loan With reduced coverage of he must continue to pay the 338 annual premium PLUS the six per cent interest on the 6000 equals So for 19000 coverage he now pays an annual cost of premium plus 360 in terest 698 If this same person is a non- smoker he can now at age 45 pur chase a 100000 lifetime coverage for only 638 per year That is four times the protection for less than his new cost for the old policy We might add that In changing the policy to the new protection the cash value plus dividends In the old policy 6225 and of 9950 invested in a mutual fund withdrawal plan would more than pay his new insurance costs never again having to dig in bis pocket for another premium For more Information on Mutual Fundi and Life In surance Policies contact Peter C Maison 10 Drive Georgetown Ont or phone 8777216 Paul J the author of the best seller Why I Invest la Mutual Fundi and President of Regal Capital Planners Ltd and Regal Capital Insurance Agenda Ltd NORTH END NISSAN 6 MARTIN STREET MILTON ONTARIO SYSTEMS ACCEM0WES FOR AUTOMOTIVE FINANCIAL GUIDE On The TAX SCENF A Main St N Georgetown jnrH AMENDED RETURNS QUESTION I paid9760 for dental work last year but I forgot to deduct it on my In come tax return Is there some way I can Change my return or am I out of luck ANSWER You may amend last years return If necessary All you would have to do Is write a letter to Canada and ask them to adjust your last years return You would also have to enclose the receipt However there may be greater tax savings In claiming that receipt on this years return If your net Income Is lower because only medical expenses In excess of 3 of net Income are claimable You may pick the optimum month period ending In the tax for example May 1987 to May 1988 and claim the medical expenses paid lurin that period