Friday, February 29, 2008

Why an insurance policy? Why not cash?


It's obvious. Because it's devious. We are talking about Stephen Harper after all.

A cash payment would be taxable to Cadman. Life insurance policy payouts to his family are not.

A cash payment would “own” Cadman for a fleeting moment in time. An insurance policy would “own” him for the balance of his life.

A cash payment is cold. An insurance policy tears at the heart strings.

Remember. Stephen Harper is be trusted implicitly. Just ask 2.5 million income trust investors.


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4 comments:

Dr Mike said...

Cash can be a dirty deal----just ask Brian Mulroney!!

Besides that , when you are best buds with the head honchos of Manulife & Power Corporation , who needs cash.

Dr Mike.

Once a tory always a fool said...

Proceeds of an insurance policy are not taxable. Therefore, $1 million from insurance would not raise the eyebrow of CRA.

But why would the Harper Tory Party worry about CRA? They know from Mulroney that CRA keeps hands-off the books and no-records of the political parties. Don't forget that the SK Tories were caught, not because of CRA, but because someone was too lazy to expunge the paper-trail.

Miles Lunn said...

If the Tories were actually dumb enough to believe some life insurance company would cover someone who was about die, that just shows how incompetent they are. I too suspect it would have been a cash payment from party funds, so no life insurance company would cover someone who was going to die very soon.

Insurance operates on the principle that most who buy it will never use it or the amount they take out will be less than they pay in. Rather it is for a small minority who have something unpredictable happen and are unable to afford it. I have paid lots in home insurance, but never used it, while paid for more into auto insurance than I have taken out.

Anonymous said...

Miles:

You're missing the point> Yes the CONs are incompetent but their is no magic to writing a life insurance policy. Its simply a mathematically derived contract, where the expected payout determines the premium, plus a profit margin.

If I was so inclined, I could have written a $1 million life insurance policy for Chuck Cadman. Its simple. I would simply charge a premium of $1 million +