Leaving a Legacy Through Charitable Giving

Charitable planning that includes life insurance allows you to bequest a substantial gift to charities you are passionate about while leaving a lasting legacy.

Leaving a Legacy Through Charitable Giving

Charitable planning that includes life insurance allows you to bequest a substantial gift to charities you are passionate about while leaving a lasting legacy.

There are various strategies for making life insurance donations and each has unique advantages:

Donating an existing policy

Utilizing this strategy, the charity should receive the entire death benefit upon the death of the insured. Donating an existing life insurance policy may reduce the donor’s taxable estate. This is an effective way to repurpose an unwanted policy that was originally purchased to cover a need that no longer exists.

Donating an existing policy

Utilizing this strategy, the charity should receive the entire death benefit upon the death of the insured. Donating an existing life insurance policy may reduce the donor’s taxable estate. This is an effective way to repurpose an unwanted policy that was originally purchased to cover a need that no longer exists.

Charitable Giving Riders

These policy riders may be added to a life insurance contract for a small fee and allow a percentage of the death benefit be payable to the charity of the donor’s choice.

Charitable Giving Riders

These policy riders may be added to a life insurance contract for a small fee and allow a percentage of the death benefit be payable to the charity of the donor’s choice.

Naming the charity as the policy beneficiary

This strategy is the simplest way to provide the life insurance policy death benefit to a charity. This approach also allows the donor to reduce their taxable estate. One of the major advantages of this game plan is it ensures the privacy to the transaction. Transfer of assets through a life insurance contract cannot be contested.

Naming the charity as the policy beneficiary

This strategy is the simplest way to provide the life insurance policy death benefit to a charity. This approach also allows the donor to reduce their taxable estate. One of the major advantages of this game plan is it ensures the privacy to the transaction. Transfer of assets through a life insurance contract cannot be contested.

Gifting Policy Dividends

This strategy is only applicable if the donor has a whole life policy. The policyholder may donate the dividends to the chosen charity. Although the donation will not be as large, this strategy will provide ongoing gifts. The dividend donations are also tax-deductible.

Gifting Policy Dividends

This strategy is only applicable if the donor has a whole life policy. The policyholder may donate the dividends to the chosen charity. Although the donation will not be as large, this strategy will provide ongoing gifts. The dividend donations are also tax-deductible.

Have the charity purchase a new life insurance policy

The charity becomes the owner and beneficiary on a new life insurance policy with the insured as the donor. The donor arranges to pay the policy premiums through gifts to the charity.

Have the charity purchase a new life insurance policy

The charity becomes the owner and beneficiary on a new life insurance policy with the insured as the donor. The donor arranges to pay the policy premiums through gifts to the charity.

When applying for a new life insurance policy for a charitable donation, underwriters will consider donation history, the charitable life insurance need and financial justification for the amount of coverage applied for.

When deciding if charitable giving is appropriate make sure you identify the cause you want to support and make sure it is a legitimate charity.
The ability to provide for a favorite charity may ensure peace of mind.

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