Are there charities that have special meaning to you? Have you ever felt as though you would like to support an organization that makes an impact, such as your college or university, church or synagogue, or the non-profit where you serve?
Life insurance can be a great way to give back to these institutions to show your support. There are many benefits in giving a Single Pay Whole Life or Ten Pay Whole Life policy as a charitable contribution to your favorite organization or private foundation.
Allows you to leave a larger contribution to your charity: You can take the money you were planning on gifting to the charity to purchase a life insurance policy with a much larger death benefit amount. The benefit will be paid directly to your charity upon your death.
Helps you leave a legacy: Gifting life insurance to a charity allows your legacy to live on after you are gone.
Gives you peace of mind: Benefit is paid quickly and easily upon death and may avoid the complications of probate or estate settlement.
Support a great cause: Help preserve the future of your church, charity, college, or organization.
By doing this, you are making one payment as a gift to your organization and the money they receive will be a greater contribution than the premiums paid into the policy. Gifting your policy may also qualify as a tax deduction for the premiums paid and a reduction in the size of your taxable estate.
In order for a life policy to be considered as a charitable contribution, the foundation generally needs to be the owner and the beneficiary on the policy. You, the insured, will pay the policy’s premium. Another option is to make the charity the beneficiary of an existing policy if there is no longer a need to support a partner or family member.
Charitable giving is “giving without receiving.” By helping meaningful organizations that offer assistance to others, you can leave a legacy that will change the lives of many.
About the Author
Karen Reyes is the Vice President of Private Client at Bouchard Insurance. Karen's team focuses on complete personal portfolios for affluent members including annual reviews and concierge style service. | Connect on LinkedIn