Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 9, 1990, Winnipeg, Manitoba Ujj Winnipeg free september policies pay Hospital patients plans aim at people who dont work outside Home by Susan Yellin the Canadian press the company Calls it a financial an insurance plan that pays Cash when you May need it most youre in the the television commercial says the Hospital Cash plan offered by Regina based Pioneer life Assur Ance pays a Day for covered accidents and and As much As daily for heart cancer or medi a similar plan offered by has daily Bene fits of to depending on premiums a spokesman experts say the Hospital Cash plans have definite but they also advise making sure you need such a plan before signing an application form and sending in a its a matter of individual con says Charlie Vic president of insurance operations for the Canada life and health insurance a National Industry and lobby each individual needs to look at what kind of coverage they what Strain there might be on their finances through a hospitalization and the extra expenses that could arise Black says its common for peo ple to have supplemental health plans that cover items such As Hospital charges for a semiprivate some companies also provide employees with shorthand Lon term disability Black says the Cash plans feed by Only a handful of insurance firms typically Are aimed at family members who dont work outside the for the Mother of a Young family would be the most common situation where you might need to pay someone to look after the be that these plans Are Only in effect when in says Wonnie a Cus Tomer service representative with lots of customers say there going to recover at ing but it Only covers you when youre in the in its application Pioneer life lists a number of advantages for its including replacing lost paying credit card Bills and paying for a temporary House it offers a few plan variations depending on whether the plan is intended for one person or a family and when you want the pay ments to for a single person aged 36 who wants the policy to pay a Day from the first Day of Helfing t and yourself with tax planning hospitalization will pay monthly premiums of there Are less expensive versions that pay out a Tom a Toronto based financial says Hospital Cash plans Are relatively new and some Are marketed through direct mail or credit card he suggests Reading the Fine print to make sure you know the require such As any such As How Long benefits will be and even the language of the definitions Are very important when it comes to the payment of income for any says de the Legal definition of eligibility for a Benefit under the insurance contract is a key ele there May be some As in most policies of this there Are also for the Pioneer life plan does not pay out benefits for an Accident that has occurred while under the influence of or says Paul Hart Pioneer lifes Vic president of communications and direct mar the policies also include a clause on preexisting preexisting conditions Are any illness for which youve received medical treatment in the year be fore the policy goes into Hartman says of Pioneer lifes if after the plan has been Pur you end up in Hospital being treated for that you Are not eligible to receive benefits under the Cash plan for two he the plans of other companies also include this clause although the waiting times May and while no medical exam May be required prior to applying for a Hospital Cash the insurance companies do require the physic Ian attending the person in Hospital to fill out a claim form before benefits Are parents often help their adult children this May present the Opportunity for the parents to help them selves in the heres where a Little tax planning can go a Long income debt manage resp planning All can be involved to produce results that Benefit everybody in the said Eho senior tax manager with peat Marwick chartered Luongo has prepared a situation to illustrate just some of the planning this is based on a real life so it reflects what is actually happening he various strategies note the following example which uses the combined Federal provincial tax bracket rates of 40 and 46 per cent illustrates various strategies aimed at saving As much tax in one year As effective planning takes a much longer so its important to look at your particular situation Over the Long term and possibly seek professional advice especially in a Case like this before you take any tax saving Luongo also realize that depending on the Revenue Canada could use its general anti avoidance Rule Gaar to disallow certain tax planning John it could just As easily be Joan has been talking to son Bill or daughter about Bills plans to set up a recycling John has in which is approximately the amount of Capi Tal Bill John also has in his resp which he usually invests in mortgages and son Bill still has of the mortgage he took out to buy his Bill could borrow the capital he needs from the or provided John is prepared to take the risks involved in starting up a new Busi he could lend his son the consider this approach for maximum tax benefits d if John instead of the Bank pro Vides the son Bill can split profits from the business with his father which then gives John a Chance to earn a Premium return on his d Bill could convert his nondeductible mortgage interest to a deductible d splitting income Between John and Bill could produce a lower total tax Luongo suggested the following three Steps John lends son Bill the from his non resp savings to pay off Bills Mike Grenby to provide funds for his new Bill borrows from Johns which would take Back a mortgage on Bills Home As because this is a business investment Bill May deduct the saving him tax a depending on the interest rate and mortgage Bill and John would form a corporation to run the Bill and John would each own half of the corporations John could be paid dividends or depending on How the business ownership was Bill is paying the interest on his business investment mortgage loan to his fathers resp instead of to the in profits from the Busi Ness Are being used to help repay the loan this Money is being tax sheltered in Johns said John has personally Lent his son another which was used to pay off the original mortgage on son Bills but John is now co owner of the business and entitled to half its risks involved Luongo suggested Bill might not take a since the business is paying the interest expense on the Bill will still collect half of any in the above Bill is actually charging his company in Terest on the mortgage this interest income Bill receives is offset by the interest income Bill pays to his fathers Luongo repeated his warning about the risks involved if the business both John and son Bill could lose and he stressed the need for Deal ing with an experienced tax planner when you get into a situation like All aspects of the personal and business finances must be re there Are often several ways to help family members with a Busi Ness or even make sure you understand the different options so you can choose the one that makes the most sense for All also make sure the arrangement is properly documented to cover the Legal As Well As the tax Banks have grip on Nova Scot ians Halifax up Nova Scot ians Are frugal with their credit cards but still owe twice As much Money to Banks than other says a study prepared by the Atlantic provinces economic Nova Scot ians owe about billion of the total billion owed in personal Loans to the country major chartered Banks about per the National average is about As far As personal loan debts Nova Scotia is on said Council researcher Aaron who com piled the study released last personal Loans owed to chartered Banks in Atlantic Canada went up from a Low of per person in 1982 to a High of per person in the third Quarter of an increase of 65 per the average debt of All canadians went up from to an increase of 48 per its Clear the debt has the potential of causing some said Fred senior policy analyst for the interest rates Are personal bankruptcies Are and people Are channelling More of their in come into paying off their that Means less a downturn in product Ion and rising Morley All this could push the Region and the country into a credit card is higher per person nation ally than in Atlantic Atlantic canadians each owed on credit cards at the end of 1989 compared with at the Start of an increase of 88 per credit card indebtedness per Canadian went up by 95 per cent Over the same from to Cosbey said Atlantic canadians tend to use credit cards less than other possibly because they traditionally have lower incomes with limited Access to cards through their residential mortgage debt also Rose during the 1980s in Canada but Atlantic because of cheaper housing went into less they owed in residential mortgages in up from nine years the figure was last year and in retirement annuities and Grifs As of september annuities and Grifs Are available from certain life Trust and Banks licensed in availability is subject to Federal legislation individual corporate policies among those offering such the following table illustrates the monthly income that of registered funds will provide at certain Trif Deposit rates Are also certain minimums May apply and All rates Are subject to change without it la Ufa annuity guaranteed Lite annuity guaranteed 10year certain to age to age 90 first year income Only or formula ice Untrif Shif Deposit year year year year year to 90 1 1 based on Purchase at age note All monthly income shown commences one month alter Purchase As rates Are affected by interest rate the rates Are subject to change at any rates represent the highest yielding plans at the time of source Rice financial group free current resp Deposit Trust Aetna 1 age 1 1 1 Canada Central guaranty Trust guaranty Trust 1 1 citizens 1 1 cooperative Trust Trust 1 confederation 1 1 1 1 counsel 1 1 1 first City City 1 first Lino line 1 guardian 1 1 1 1 1 1 household Inland 1 1 1 investors group group 1 metropolitan Montreal Mutual 1 1 1 National 1 1 1 North West West 1 1 Pacific Western 1 Western 1 1 1 peace Hills 1 Hills 1 1 Peoples 1 Kronor 1 1 Royal 1 Saskatchewan 1 1 1 1 Standard 1 1 1 1 Sun Lite 1 life 1 Wellington 1 1 Dank of 1 Canadian Western 1 of Western 1 1 1 Hon Kong 1 1 Lau Ronlan 1 National 1 Royal Bank of 1 Scotia Bank of 1 1 Toronto Dominion 1 1 200 Dominion 1 1 life companies companies America 1 Canada 1 1 1 Crown 1 great West 1 West 1 manufacturers maritime metropolitan 1 in 1 North american american 1 Royal 1 1 Seaboard Standard 1 Sun trans Anterica other credit credit la Caisse de Cal so de Security Home Man 1 Nan mag certain May apply to both and rate subject to change without Tor Home my arc compound annual Inlo Resl and May include 1 500 on rr6p and interest on Are term certain Man Niuma May the majority Are compound not annual and will Days Days or prior to maturity with a Market value not All Days Days Anies Oiler both registered and no registered quoted As of september flee financial group Winnipeg free Phi is ;