Affiliated with Sentinel Life &
Sentinel Financial Management Corp.
- Hans H. Mathisen
May issue of LIFE LETTER,
From Information Thieves, covers how you should
protect yourself against people who may steal your confidential information.
Please, dont get caught! Be very careful about what you throw
in the garbage.
Life Insurance and the Banks
This issue of LIFE LETTER covers a topic
few people are aware of . You pay more for your mortgage life insurance
when you purchase the coverage from the lending institution than if
you buy the same coverage on an individual basis. And, with the individual
life insurance policy, you are in control. So, why would you want to
get your life insurance from the bank?
THE STOCK MARKETS
As of June 1, 2000, the TSE 300 is the only major stock index that shows
a positive return for the first five months of the year.
Over the past several years, Ive repeatedly advised my clients
to stay out of the Canadian equities market.
Did I give you the wrong advice? Should you have been invested in the
Canadian market and not in world markets, as I have proposed?
I dont think so. And here is why: The TSE 300 Index is made up
of the stocks of the 300 largest Canadian corporations which are traded
on the Toronto Stock Exchange. But the spectacular performance of the
TSE 300 Index during the past year or so is mostly due to the success
of only two companies: Nortel and BCE. As a matter of fact, Nortel,
one company out of the 300, makes up 18% of the TSE 300 Index! Please
read this again: 299 companies make up 82% of the TSE 300 Index and
one company [Nortel] makes up 18% of the Index. Doesn't this appear
to be a situation out of alignment?
So, my advise still is: Be careful about investing in the Canadian equities
market. Instead, invest your money in the much broader based equities
markets in the U.S., Europe and the Far East. Your risk is lower, and
your potential for long term growth is better
Protect Yourself From Information
Jill told Jack she noticed a young fellow going through
their paper recycling bins. At first, she thought he was just looking
for discarded adult magazines, but later realized he was rummaging through
These bins often contain old bank statements, cancelled cheques, private
letters, miscellaneous papers, old documents, credit card statements
and envelopes. And if its from a business or professionals office,
old client files or data. Of course magazines can be found there, too.
There have been stories in the news about scavengers going through peoples
discarded data looking specifically for these types of items. The information
that can be gleaned from such material is valuable to information thieves
and can he potentially damaging to you.
Bank Account Statements - With an old bank statement, a cancelled cheque
and a little bit of todays technology, anyone can easily print
up cheques from your account on their computer and forge your signature.
You can imagine the havoc this can wreak.
Credit Card Statements - Just how valuable is your credit card number
to a thief? A couple was vacationing in Montreal last year when their
credit card information got into the hands of an organized crime gang
in Mexico. Overnight their card had been maxed out. How would you like
your next vacation to start this way?
Envelopes And Magazines Check your name and address on the magazines
you subscribe to, or the notices you receive, and you will often find
your account or membership number is part of it. With that number, anyone
can gain access to your member or account information. And re-direct
your mail. In some cases, this can be done on the Internet. If someone
can re-direct your mail, would you wonder what else they might be able
Office Waste - The information that can be found in discarded office
material is very valuable. It can contain confidential information on
your customers, correspondence from the companies you deal with, statements
of account, customers account data, quotations, billing information,
purchase orders, etc. Would you like a competitor to get his hands on
any of this information? Or any unscrupulous person?
Jill and Jack decided to foil the information thieves by buying a personal
paper shredder at an office supply store for less than $100. They now
shred all papers containing names. Though the shredders output
might be pieced back together by a determined thief, stirring it up
should make this practically impossible.
To learn more about our rules of confidentiality and privacy of information,
please call Hans Mathisen at 242-7042 or email firstname.lastname@example.org.
Mortgage Life Insurance And The Banks
Dick is arranging a mortage
and the banker asks if hed like to include life insurance to pay
it off if he dies. Sounds like a good idea, so he says, Sure.
After filling out and signing a few more forms, he has it.
But what does he really have?
The bank sold him reducing term insurance with itself as the beneficiary.
Bankers love it because you pay the premium and they collect the proceeds.
It also helps to lock you in as their customer. The only advantage to
your family is it pays off the mortgage if you die.
Is that really an advantage? Or would your family be better off
if they collected the insurance and then decided whether to pay off
the mortgage? If they decide to sell the house, isnt it easier
to sell with a mortgage? Another strategy many use is to invest the
money, make mortgage payments with the income, and still have the cash
after the mortgage is paid off.
What happens if you increase your present mortgage, or sell your present
home to buy another with a higher mortgage? Or decide to switch banks?
You need new insurance. But what if you cant get it?
A 1992 British Columbia case illustrates this problem. A couple, with
the same financial institution for over 15 years, had a five-year mortgage
which they kept renewing. At each renewal they had to apply for new
insurance. Prior to the third renewal the husband was diagnosed as having
cancer. When he died, there was no insurance to pay off the mortgage.
The answer is to have a policy which belongs to you, not the bank, which
is paid to your beneficiary, not the hank, and which doesnt require
proof of insurability every time you renew or change your mortgage.
The only benefit bankers insurance might have is if it were cheaper
than owning your own policy. It isnt, as one customer had to explain
to his bank in answering its offer to insure his line of credit. In
your letter you stale that you have negotiated a highly attractive
l(fe insurance package. You further state that because this
is group insurance prices are extremely attractive After looking
at comparable rates per thousand for my age, I find that instead of
paying $3.84 for one year, $5.52 for five years, and $7.80 thereafter,
1 can purchase term insurance with a large insurance company for $2.37,
and that premium will remain constant for afull ten years. How can you
say your rates are competitive let alone attractively priced? This is
a distortion of the facts. Is this the kind of thing we have to look
forward to if the banks are allowed into the insurance business?
Want mortgage insurance that you control, not the bank? Call today:
Mathisen Financial, Inc. 242-7042 or email Hans at email@example.com.
1999 Bowen Financial Inc. and Donald F. Pooley, Inc. All rights reserved.
Illegal to copy without written permission.
Commentary] [Tax Strategies]
[Associated Sites] [F.Y.I.]
[Client's Comments] [Biography]
confidence is the power that binds together all harmonious human relationships.
335 Redberry Road
Saskatoon, Saskatchewan S7K 4W5
Bus. (306) 242-7042 Fax. (306) 242-4314