Money Management Newsletter: Insurance
The Luck of the Draw - and making a difference
Have you ever dreamt of winning the lottery? If
you're like 88 per cent of the adult population in Canada that plays or
has played lotteries, your answer is probably a resounding yes! And why
not? Although most people know exactly what they would buy with their
winnings, wouldn't it be interesting to know how past winners actually
spent their millions?
According to a recent survey commissioned by the Ontario Lottery and Gaming
Corporation, Ontarians are both practical and generous when it comes to
money. The survey revealed that only 2 per cent of Ontarians would quit
their jobs if they won a million dollars tomorrow.2 Additional research
conducted with Ontarians who've won over one-million dollars shows that
75 per cent shared their good fortune with friends and family, while over
45 per cent donated to charitable organizations.
Many lottery winners have chosen to donate generous
sums of money to causes that are important to them. In June 2002, Robert
Hardier of London, Ontario donated one million dollars of his LOTTO 6/49
winnings to the London Health Sciences Centre and allocated the funds
for prostate cancer research. The one- million-dollar donation is being
used to hire a leading scientist and conduct important research in molecular
genetics. Hardier saw winning the lottery as an opportunity to share his
good fortune and see that the tradition of research excellence continues.
For those who aren't so lucky at lotteries, but would
love to change someone's life in the same way Robert Hardier had. Here's
how some people, through an insurance policy have been able to do just
We normally think of insurance when we wish to protect
ourselves whilst in our cars, the car itself, or the contents of your
home, etc. However, more and more, community-spirited Canadians are buying
additional life insurance contracts, for the specific purpose of leaving
a large bequests to their favorite charitable organizations. Each year
millions of dollars are gifted to church groups, hospitals and/or research
foundations such as the Canadian Cancer Society or Heart and Stoke Organizations
in this manor. By buying "permanent life insurance" and having
the policy issued stating that the owner and beneficiary are the charity
of your choice. This ensures that the proceeds from the insurance policy
will be given directly to the charity. The insurance premiums paid by
you each year will also generate a yearly tax credit. The flowing overview
list some of the pertinent details.
Charitable donations - overview.
- Charitable donations qualify for a tax credit rather
than a tax deduction.
- Tax credits directly reduce your tax liability.
- Tax deductions reduce your income that is subject
- Securities (Publicly-Traded and Employee Stock Option
- Real Estate
- Canadian Cultural Property
- Ecologically Sensitive Land
- Life Insurance Policies
- Residual Interest of a Trust or Estate
giving through insurance: Making that special gift
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, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.