| Making gifts of life insurance easy to understand
Donating an unneeded life insurance policy to be more generous to charity and to your loved ones
Ghislaine Forest, President of the Delectable Edibles Bakeries empire, decides to name The Kids Can Bake Foundation as the beneficiary of a $500,000 life insurance policy she no longer needs. In the case of there being a future family emergency, Ghislaine wants to have the option of changing the beneficiary of her policy, so she assigns the Foundation as her policy's beneficiary, but not its owner.
In the event that the Foundation was to receive the policy's death benefit, Ghislaine has spoken to Foundation staff and arranged for the Foundation to endow the proceeds of the policy, and to use the interest it generates to annually fund scholarships for promising bakers. She has asked that the scholarships be given out in the name of her late mother Jeanne Sicotte, the founder of Delectable Edibles.
Although Ghislaine cannot get charitable tax receipts for the premiums she continues to pay on her policy, upon her passing, her policy generates a $500,000 charitable tax receipt for her estate. The huge tax credit allows her to leave an additional $250,000 to her children and grandchildren.
Note: This is a fictional example, but represents the typical benefits offered by making a charity the beneficiary of your insurance policy.
Who should you speak to for expert advice on charitable giving through insurance?
Contact Bequest Insurance to discuss the best policy to meet your charitable goals and personal circumstances, and learn what rates would be for you.
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