Use Your Life Insurance to Change the World
By Rod Abbott
There are many ways to make a difference in this world. You likely have causes and organisations you care deeply about and contribute to on a regular basis. But did you know that you have the ability to do more for your favourite causes using your life insurance? While life insurance might not be the first thing that comes to mind when you think of charity, it is a unique way to achieve a truly remarkable impact.
A gift of life insurance allows you to make a bigger contribution than you ever thought possible, without writing a big cheque today. Imagine creating lasting and significant change, without committing a large chunk of your assets! It’s a win for you, and for the causes close to your heart.
How do I make a gift of life insurance?
1) Name a charity as your beneficiary
If you have an existing policy, then you can simply name a charity (or charities) as one of the beneficiaries. You retain control of the policy during your lifetime and are responsible for the premiums, but on your death the charity receives a sizeable gift. As an added bonus, your estate will get a charitable receipt to help pay down taxes on your last tax return.
2) Donate your policy to a charity
You can also donate an existing policy that you no longer need to a charity now. A calculation is done to determine the policy’s value, and you receive a charitable receipt for this amount that can be used towards your current tax returns. In addition, if you keep paying the premiums for the policy to the charity, then the premium payments are tax deductible as well!
3) Buy a new policy
Lastly, you can buy a new policy and name a charity (or charities) as the beneficiary. You maintain control of the policy and pay the premiums. When you pass the charity will receive a major gift, and your estate will enjoy a charitable receipt.
These are just three ways to get creative with your life insurance and use it to achieve the kind of change you’ve always wanted to make. Consulting a qualified insurance advisor that is familiar with charities is a critical part of this process. While gifts of life insurance can be very effective when used properly, it is important that the right types of life insurance are used, and that the charity is willing to receive the gift.