Use your life insurance when you are still living

May 5th 2009
Hello my friend,

1) How to actually use your own life insurance to enhance your life style now...
2) Great Calculator Website...
3) Creative Mothers Day Gifts...
4) Recent Investment Moves...

1) How to actually use your own life insurance to enhance your life style now...

- My goal is to illustrate a concept many are unaware of. Use your life insurance while you are living... Interesting thought isn't it?

Please understand there are variables in this example and I can provide all my background material upon request. Better yet, if you would like to see if you could qualify for this program, please give me a call. Please remember the numbers are not set in stone and are all relative, if you need more or less coverage your deposit amount will reflect that, pretty simple.

Male, Age 32, Non-Smoker - $300,000 of Life Insurance. Here are the basics:

- He deposits $600 per month into this savings vehicle ($7,200 per year) for 10 years... after which he will stop the deposit.
- Based on the projected dividend rates (100 year track record) he will have life insurance paid up for life. * no further deposits required after yr.10
- At age 60 he will have a guaranteed cash value of $130,000
- At age 60 based on the current dividend scale there would be a total Cash Value and Dividend Value of $266,000 (which can be used to collateralize a loan from the bank and provide him retirement income)
- At age 60 the death benefit would be approx. $552,000 (and growing if an income stream was not being taken)
- Consider this plan a guaranteed (tax sheltered) savings plan with the added benefit of Life Insurance
- Fixed income investments attract the highest tax according to CRA, this insurance savings plan gives you access to a solid fixed income vehicle with the advantage of tax sheltering.

Remember this policy holder only made 10 deposits of $7,200 = $72,000... Yet he has a growing cash value and an increasing death benefit. I have attached an article that outlines how you can utilize that cash in the policy to supplement retirement income in a tax effective manor. Please see PAGE 8.

This concept should be reviewed in person and a personal illustration should be run before ANY decisions are made. Come in today and see if we can enhance your guaranteed savings plan. In market times like now, guaranteed investment vehicles are looking rather attractive, why not bundle your fixed income investments (which attract the highest tax rate) and your life insurance together to produce tax effective growth.

2) Great Calculator Site... http://www.dinkytown.net/

- This is a fantastic site I have been using for a couple months now (scroll down for Canadian specific calcs). It has all sorts of interesting calculators along with your staple financial calculators. Some valuable ones are: Auto lease vs auto purchase, Rent vs. Buy Real Estate, Cool Million, Life Insurance Calc...

3) Creative Mothers Day Gifts...
http://www.gifts.com/occasions/mothers-day/her/o11hFr6aicp849n?featuredIdea=8330

4) Recent Investment Moves

- AT&T, General Mills, General Electric and Coca-Cola have been sold out of the Foreign Equity Pool. Schlumberger, Deere and Co. and BHP Billiton have been added. To give you a sense of our philosophy I have attached a summary report I received directly from the Director of Research himself on April 15th 2009. I have not diluted the info and it is all right there. It is only half a page but after reading it you will understand our thought process when a buy or sell decision is made.

I look forward to your continued trust and as always if you, your co-workers, friends or family have any questions I am never too busy for your/their call.

Dustin
www.serviss.ca

Dustin Serviss, RHU
Associate
The Peacock Sheridan Group
205-1180 Sunset Drive Phone 250.869.1451
Kelowna BC V1Y 9W6 Fax 250.869.1452