30 - Wednesday, July 15, 1992 - North Shore News

N

hard to come

up with new
products which
are both timely |

_and helpful to

our members.
Well, guess
what — we've
got another
one up our
sleeve. Call or
visit your
branch and
find out about

the “Escalator”. It

starts at a high .

rate and goes

‘higher each

a |

. make a will.

Bee you depart
this mortal world,

there’s something you need
to do. And since very,
very few of us know
exactly when we're leaving,
it’s something you need to
do now — make a will.
This is not as morbid as
it may sound; making a
will is sound financial
planning. If you should die
without one, you will have
plunged your family or
next of kin into a legal
and financial morass.

Step 1: find out what you're
worth.

This was covered in
some detail in the
Communicator’s summer
"91 edition. Essentially, it’s
very simple — figure out
what you own, what you
owe, and then what’s left
over is your net worth.
You'll need this
information when you sit
down to make the actual
will.

A word of caution: most
jointly owned assets
become the property of
the surviving owner. For
example, the house you
own with your spouse may
net be yours to give away
just yet. .

Step 2: pick your executor.
Since you'll no longer
be here, somebody has to

actually implement your
will. That somebody is-
cafted an “executor” who:
takes control of and
protects your assets upon
your death. The executor
then disposes of your.
assets according to your
wishes. Logically, it
follows that this person °
should be willing and able

to handle the responsibility.

It also helps if-he or she is
familiar with your
financial situation. For this
reason, many people pick
their lawyer or accountant,
but any trusted colleague
or friend could handle the
task. Just remember, they
could get caught up in a
family cross-fire.

Step 3: go to a lawyer.
While it’s possible to
draft your own will, there
are a number of technical
requirements that have to
observed. If not, your will
may not be worth the
paper its written on.

" Common sense tells you it

would pay to have a
technician take care of the
technica! details. In the
case of a will, the proper
technician is a lawyer, or,
in B.C., a notary is also
acceptable.

Before you show up for
your appointment, make
sure you have the
following: an accurate idea
of your net worth and
what you own; the names
and addresses of the :
people who will inherit;
and the name/address of
your executor.

- Step 4: put your will in a -

safe place and teil your
executor where it is.

A safe place isn’t the
sock drawer. A safe place
is a safety deposit.box ($35
a year at any of our
branches). Take your will,
plus any other relevant ©
documents such as
insurance policies or real
estate deeds, and put them
in the safety deposit box.
It’s not a bad idea to give ©

‘your executor an unsigned’

copy for ‘his or her’
reference, too.

of being disabled and
unable to work for up to
three months. And
Statistics Canada claims
you're five times more
likely to be disabled than
to die during your
working career.
Persuasive figures. _
Certainly, iong- or
short-term disability can
be a major crisis for a
family, particularly if both
incomes are crucial to
healthy farhily finances.

But how much does it cost?
Private plans aren’t
cheap but, like most -
insurance, it depends on .
what kind and how much
protection you buy. For
example, if you’re 35, in a
professional occupation,
with total disability’ =

- insurance to provide a.

monthly income of $2,000
until retirement, you can...
expect to pay between.”
$700 - $1,000 annually. .
But this would represent a
“stripped”. policy. If you-.
buy dn automatic cost of .
living eption(COLA), add:
$200 - $300 to, the yearly.
premium. A COLA. clause
is just one of a bewildering:
tiumber of optior :
boosts the 'price. |

- Jrisurance jis, of. course

-a highly individualized

product, but the Money ,
Manager suggests looking
for. the following features
‘as a starting point.

ones, will protect you if
your disability prevents -
you from doing you

regular job. Others will.

insurance? Here’s
why and what to
look for.

H inancially speaking,
your most, valuable
asset isn’t your house or.

stocks; it’s your earning
power. Each year

_ thousands of Canadians

lose their earning power
through some form of.
disability, either by -
sickness or accident.

In fact, according to
Canada Mortgage &
Housing Corporation,
2,912,000 million
Canadians are disabled,
61% of them between the
ages of 15 and 64.
According to one’
insurance company, you _
have a one-in-three chance

only protect you:if you
can’t do any job, no.)
matter how low paying or.
unsuited to your intellect
and experience. ©

Policy. - PEs
Look for a plan that the
insurance company can’t
terminate, and that can be...
renewed on the original = |

_ terms and conditions.

Buy a policy. with a 90-day ~1
“elimination” period. |
Disability policies kick *
in after 30 days or-more. .
This period of waiting is
called an “elimination”
period; the longer you
wait, the cheaper the
policy. 30 days is the most
expensive, 60 a little less
so, but 90 days is where
you get the big price
break. What this means is
that you should have
enough in your savings
account to last 90 days
without any income.

Choose a cost of living
option.
Inflation is a fact of life.

Consider that over the last’ ~~