Blo - Wednesday, November 28, 1984 - North Shore News EE business || HERE'S HOW Annuities work for life By BERT WICKAM ONE OF the most frequently asked questions on retire- ment planning today is) What is an annuity and how does it work? There are many kinds of annuity but the simple life annuity 1s the most common and most misunderstood A simple life annuity ts merely hfe insurance in reverse. For example, with a life insurance policy you pay the imsurance company a premium for as long as you live and the company pays out a lump sum when you die With a hfe annuity the reverse applies You pay the insurance company a lump sum and they pay you an in- come for life. The insurance companies don’t really care whether you die too soon or live too long They have so many people on their books, either paying premiums or receiving an- nuities, that the law. ot averages always works for them. On the other hand. the rn- dividual never knows tor sure when he or she will die. He either buys life insurance to protect his family or an an- nully to guarantee an income tor life New, exclusive, prestigious | There are strict) povern- ment regulations to protect the public and the companies compete fiercely for your business so you should pet a fairs return) provided you know what you want and Shop caretully. BERT WICKHAM Remember, you will be get- ting back your capital and tn- terest spread over your ex- pected lifetime If vou die sooner than expected, this merely makes up for those who will live longer Whatif vou don’t want the income to cease ist vou die too soon? You may wish to have the income continue to your Spouse, in which case vou will buy a jotnt annuity payable until the death of the sur vivor Or you may want to Buarantee a minimum number of payments. By pay- ing a higher premium, can, tor example, have the in- come guaranteed tor at least S or 10 vears or even longer depending on the need The longer the guaranteed period, the higher the extra premium. There are usually two Feasons for wanting a guaranteed period — Firstly, there may be a dependant such aS a parent, spouse or child) This is a logical need and many annuittes 9 are bought with a sutrtable guarantee to provide tor such a dependant The second reason tor wanting a Zudraniee is not quite so Jogical but neverthe- less a very powertul one for those people who are not comtortable with the thought that they mught die betore thes get back all cherie moneys As long as they realize the ex- tra premium is just a form of life insurance then this is pertectly okay The question [oO ask ois How much lite insurance would you normally be buv- ing if you weren’t buving an annuity? Tf vou need to pro- tect a dependant, bs all means pay extra for the addi tronal guarantee On the waterfront office space OSE Npret Catala beans feast orbits sco a Weta now leasing cron cag BU gerne roteas bea setrodbl aliinese ‘doe prosmtun Destteftrsg on (Me perfest toca HarlbourView Place a a a 9) ‘ PAP PPERA TL OY Phone IB4 IID you - other hand, if all you need is a guaranteed income for life, then a simple lhfe annuity with no additional guarantee will give you the best return. 24 HOURS TELEPHONE ANSWERING SERVICE ONLY $50 PER MONTH CLASSIFIED ANSWERING SERVICE 669-7973 frown we mw weny wooo gree www aw annsy JUST ANOTHER ANSWERING SERVICE More people rely on Wes-Tel’s superior answering service than any other —because courteous, efficient operators who keep you in touch up to 24 hours a day, 7 days a week are only the beginning. We've found a way of “personalizing” our answering service to meet your needs for business or residence. References are gladly provided. Wes-Tel gives you more without costing you more. That's why we're Number One, and prcud of it! WEST TEL 980-3611 NOTICE OF PUBLIC HEARING ZONING BYLAW — ELECTORAL AREA B GREATER VANCOUVER REGIONAL DISTRICT SQUAMISH VANCOUVER Spell vant OUVER Administration Office 2215 West 10th Ave Vancouver BC November ¢1 1964 LiLOOET BAO ELECTORAL AREA B WORTH VANCOUVER (Bev Canna, BuAnagp avn , Ce. S Ucretary Groator Va lucy UWrlOcory Stulo 1111 Third Avenve loco BC Poyle..at Ubotet I