Giving through life insurance
Many people of modest means are surprised there is still a way to make a substantial legacy gift to their favorite charities by using life insurance as a charitable tool. It's easier than you think, and you may be pleasantly surprised at how your modest annual contributions can be multiplied into a substantial gift.
Benefits for donors
- A gift of a life insurance policy often allows a donor to make a substantially larger charitable gift than would otherwise be possible.
- Charitable life insurance gifts generate tax deductions based on the premium payments.
- The donor’s estate remains undiminished in spite of making a substantial charitable gift.
- Donors receive the satisfaction of knowing their gifts will help support their favorite charitable organizations long after they are gone.
Benefits for charities
- Gifts of life insurance are a critical source of future income that can be planned for and depended upon.
- Modest annual gifts are multiplied into substantial support, opening the door to major gifts from many more donors.
- The charity receives the payment at the donor’s death in cash, undiluted by administrative fees and not delayed by probate.
- The gift is made during the donor’s lifetime, enabling the charity to recognize and thank the donor.