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The Money Management Newsletter: Insurance Products
The Luck of the Draw - and making a difference

By The Money Management Editor, with files from News Canada
Money Management Newsletter, July 2003

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 that.

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.